Sensitivity of S&P 500 EPS Forecast to Changes in GDP and the U.S. Dollar This table suggests the sensitivity of S&P 500 EPS forecast to changes in GDP and the U.S. dollar. Image: J.P. Morgan US Equity Strategy & Global Quantitative Research
Shortage of U.S. Dollar A severe shortage of U.S. dollar could contribute to a decline in the volume of trade. Image: Fidelity Investments
U.S. Dollar Debt Outside The United States The amount of U.S. dollar-denominated debt outside the United States has hit a new record high Image: Institute of International Finance
Gold, U.S. Trade Weighted Dollar and S&P 500 In 2008, gold outperperformed after the Fed stepped in and removed liquidity constraints. Image: Goldman Sachs Global Investment Research
U.S. Dollar and President Trump This chart shows the correlation between the U.S. dollar and President Trump’s approval ratings Image: TD securities
S&P 500 Next Twelve Months P/E vs. Dollar Index This chart suggests that the strength of the U.S. dollar supports higher P/E multiples for the S&P 500. Image: Strategas
Purchasing Power of the Consumer Dollar in U.S. City Average As prices increase, the purchasing power of the consumer’s dollar declines. US$100 in 1913 would only be worth US$3.87 today.
A Weaker U.S. Dollar in 2020? This chart suggests that the U.S. dollar could decline this year, as long as the Fed keeps pumping money into the banking system. Image: Fidelity Investments
U.S. Dollar Liquidity vs. EUR/USD The inflow of U.S. dollar into the financial system should continue to grow this year and tends to support the euro against the US dollar. Image: Saxo Bank
U.S. Dollar and the Big Mac Index The latest Big Mac index suggests that the U.S. dollar remains overvalued against most currencies. Image: The Economist