Stories we should be thinking about
Another bullish week…
Global stocks gained another $1.6trn this week. Equities now worth $76.9trn, highest in history. Equals to 102% of world GDP…
…and as Fast FT noted:
The S&P 500 closed at a fresh record high, while a rebound in tech stocks saw the Nasdaq pull off its best week this year.
So why? Well I think it is all helped by the lower US dollar which is better for global balance and confidence:
The dollar index — which measures the greenback against a basket of peer currencies — has declined 0.6 per cent on Friday, taking it to 95.15 — its lowest point since late September, according to Bloomberg data. The index is also on track for its steepest one-day slide since June 27.
And if you look at history it suggests it can go lower:
And why would this be? Well of course a less impressive US economy could be influential and I think confidence is rolling over…
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