Trump-related market euphoria is driving markets to extreme levels.
The key question: how long can the dollar-stock correlation last?
In 2016, we saw a similar pattern around November — both the dollar and stocks rose, but once the dollar topped, stocks continued to climb.
Could we see a similar dollar reversal this December? The current sharp move in stocks could attract more investors, sparking extreme optimism. This might ultimately set up a very different outcome in 2025.
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