“As a result of a weaker dollar, I would expect assets priced in U.S. dollars to do well,” Parets noted. “If the denominator in a fraction weakens, the numerator is going to appear that much more attractive. The metals and energy space particularly stand out in that sort of environment.”
The dollar ETF is down about 3% year to date.
The inverse relationship between the U.S. dollar and stocks hasn’t always shown up — correlations change, in other words. For example, the S&P 500 and the dollar were climbing together at times earlier this year. [Why Stock ETFs and the Dollar are Moving Higher Together]
PowerShares DB US Dollar Index Bullish
