The Trump/Fed/Treasury/Taxpayer backed reflation parlor trick known as currency devaluation does not only benefit the reflation sensitive US sectors (Materials, Industrials, Financials, etc.), it also benefits much of the world’s asset markets. The ratio of ACWX (World ex-US) to SPY is usually in line with inverse USD. Lately it has under performed but appears to have some catching up to do.
In other words, global stocks, so long under performing US stocks, would likely do better than US stocks if the US reflation is successful in compromising the dollar.
Here is nominal ACWX at its extreme. So many markets are following the Silver/Gold ratio to extremes. The SGR reversed, at least temporarily. It had better be temporary for the sake of the reflation trades in the US and all over the world (EM, Asia, etc.).
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