A couple of weeks ago as the markets were tanking and everyone was running around like a chicken with its head cutoff; i was quietly watching the markets, currencies and commodities and trying to decipher what was happening and all the while i noticed something really strange and as far as i know has not happened often or at all….
The dollar up/market down correlation seems to have completely disappeared! You used to be able to count on it like clockwork; market tanks, dollar rises, gold gets taken to the woodshed on account of the dollar rising…. This used to signify the role the dollar held within the dollar reserve system… The dollar WAS KING…
When everything else got sold, the dollar got bought; it was good to be king…. When everything was losing value our savings would rise in value…. Market participants had faith in the dollar in times of need. That sadly is no longer the case… Which leads me to believe the dollars days as King within the dollar centric monetary system are coming close to an end….
The dollars rise in times of need represented money moving from equities to something the market participants viewed as “safe” and in a fiat currency world that meant selling other currencies/equities in favor of buying the dollar.