All language subtitles for 6_foda010002

and P 500 makes positive gains
over the many years. Here for

made a slightly positive gain.
Um but USD had big divergence

the short term. So you must
understand the global economics

synchronized growth like China
and the Eurozone. So whereas at

to decrease in price as well as
we started decreasing S and P

that will give us a clearer and
better understanding of the

500 index and the DXY. Um
during COVID lockdowns there

investment was going into the
Eurozone. In 2017 we saw global

other currencies were not doing
the same. Now that's mainly

general rule to the
correlation. Particularly in

flows where capital and
investment is going into and

investments such as into
indexes and of course from what

means is whilst USD was
increasing in price. Lots of

you know started to deflate at
that time it's called reflation

market particularly long term
anyways guys that's it for the

00 and DXY. So the takeaway
lesson from all of this is

actually no set rule of what
you may see in the short term.

riskier investments are not
preferred hence why stocks may

about investments into that
country and how it affects

example during COVID lockdowns
back in June of twenty twenty.

are people seeking their safe
havens? Where they seeking that

positive correlation between
the S and P fivehundred and

stock prices and everything
like that but in terms of the

because the Fed had one of the
first we won't call it

example I see a direct
correlation particularly on the

logically thinking the
investment at the time. Lots of

learnt about constant ease in
and then the lesson afterwards

lower time frame but when it
comes to the stock market and

lower time frames you're not
really going to see this as a

yield market and DXY for
example. So what you must

logical. As bond prices go up
interest rates go down. The

500 USD should also rise at the
same time as well. Times when

understand about S and P
5hundred and DXY. There is no

the time in 2015 where we saw
DXY massively increase because

was a complete inverse
correlation between S and P 5

asset classes. Which one makes
sense to perform better? Where

bond purchases there's never
actually really been a

following suit after this after
what they happened and what

So where as if we look at you
know Euro USD and DXY for

there's this correlation
because you've got to think

program. But USD had a much
more successful one. Therefore

successful one. It's always
gone on quantitative easing

course consider this long term
understand where money actually

500 increases and grows so does
so does DXY however this isn't

500 so good gains now this is
the point that I made in the

This was I believe on a on a
four hour chart between S and P

slows down. Therefore US
increases because safe haven

So what happened then? The
dollar increased because it was

easing program. So if we if we
think back to that where we

first lesson of the asset class
correlations I hope this will

positive correlation now as you
can see over time as a S and P

where we talked about how
tapering occurs. This is

at the time and look for the
movement of money into certain

better yield? Are they seeking
an investment for a hedge

the US dollar we don't see that
direct correlation but of

the Eurozone. Another thing as
well, the dollar doesn't like

downside because of mainly the
strength into USD and also

suffer a bit during these
times. But ultimately the the S

all the way up as seen by this
orange line over here. Stocks

against inflation for example.
Now during times of crisis

You can also see on at that
time Euro USD saw so much

of the US monetary policy. Two
years later on that's when we

reflation. Um so what you tend
to see is as a dollar really

they led. Um China started to
get stronger as well especially

beginning over the last 20
years there's been a 40%

direct correlation as compared
to what we may see in the US 10

and demand appeal. Slow down in
trade slows down USD liquidity.

always see a rise in the stock
market. We've got 2008 crisis.

then the stock market is in
orange let me just check that

USD is a safe haven in these
times so risk assets like

always the case you've got to
understand that long term

higher returns on the
investment as well therefore

it had a massive divergence
from other global currencies.

translates into the US dollar

it goes back to how it was
that's when the dollar started

started to see a lot of the the
other global economies

completely successful tapering
plan because if you actually

divergences from global
currencies. Um so what this

tapered back constant easing.
Therefore the US dollar boosted

market. So as we can see the
stock market is always we

people investing into the US
economy therefore not as much

yield goes down too. As bond
prices go down, interest rates

look into the history of
tapering and slowing down the

treated like a safe haven and
stocks went down at that time.

exactly what happened. Um in
twenty fifteen the Fed actually

we've seen the bond market. Now
just actually looking at the

In twenty fifteen the Fed
tapered back the quantitative

therefore as more investment
happens into into the S and P

what we got here is the dollar
is in blue I believe it is and

10 yield also strengthens. Um
and also instead US ten US ten

stocks decline as investors
would much rather go for safer

does that have firstly on the
bond market and then how that

real quick No the the orange is
DXY and blue is the stock

asset class correlation between
the stocks and the dollar. So

DXY. Because of foreign
investment they invest into the

you've got to think about it
like this you you always must

there there's immense global
uncertainty international trade

US stock so they need to
exchange money into USD

understand where is investment
going into and then what effect

Now over the last 20 years
there's been a 40 percent

there's more investment into
the country now this is

it ranges, there's different
maturity dates. Now the

correlation that you've got to
understand is usually when

simply just declines. The
reason for this is quite

So the second type that we're
looking at is the stock market.

of price moves. You start to
see that as DXY strengthens US

interest rate environment means
a higher return on the bond so

bonds for example 3 month
bonds, 30 year bonds, you know

something that you guys should
understand until now because

go up, the yield goes up too.
Now think of this. The higher

in the yields. You understand
that there's of course two year

there's big news events that
leads to these different types

understand from treasury bond
market that means the US ten

the US ten yield of course
we've learned about the bonds

market and then commodity
market. In this first lesson

stocks. Then of course we had
the bond market, the currency

classes. So that was mainly the
equities markets which is bond

we're going to be looking at
stocks and bonds. So let's

start off with the treasury
bond market. So as you

we looked at the various
different types of asset

first videos that we did in the
first section of fundamentals

especially but we're going to
be looking at the asset class

correlations. So if you
remember back to one of our

that I've been getting you know
as request from my students

So guys this is probably in one
of the most anticipated videos

make sense and I'll see you in
the next video Yeah.