Should investors construct portfolios soley based upon what direction they think currencies will move? Some times this works and some times you can get you head handed to you!
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This chart was shared with Premium Members last week. It reflects that often times the Euro and the 500 index have a high degree of correlation.
Yet if you went short stocks back in October, due to a Euro decline, you got your head handed to you. I wanted to share this chart today, due to the 500 is moving quickly higher above its April 2011 highs, despite the Dollar moving up of late. The above chart is a reflection that decisions should be geared towards the patterns that each product has more so that correlation decisions.