Bloomberg Intelligence's 'Equity Market Minute' 7/26/2018

Gina Martin Adams discusses the impact of currency fluctuations on equity prices. A strong dollar has historically coincided with strong U.S. equity performance, but this trend may reverse if the dollar weakens. Charts illustrate the relationship between the S&P 500 and the dollar index, showing U.S. outperformance during dollar strength. Interestingly, energy stocks have also outperformed during dollar strength, contrary to conventional wisdom. The video concludes with a recommendation to monitor currency markets closely for potential impacts on equity portfolios.

What relationship has been observed between dollar strength and U.S. equity performance?

How might a weakening dollar affect U.S. stocks in comparison to global counterparts?

What unusual trend has been noted regarding energy stocks and dollar strength?

What does conventional logic suggest about the relationship between dollar weakness and energy stocks?

Why is it important to monitor currency markets in relation to equity portfolios?