Posted 3/25/2024, 12:20:00 PM
Dollar and Stocks Rally as Economy Shows Signs of Goods Recovery; Financial Stress Low
- The dollar rose over 1% last week; the short-term trend may be changing from downward to neutral/range-bound
- Stocks rallied broadly last week across market caps as bonds rallied post-FOMC meeting
- Economic data is pointing to a recovery in goods production side of the economy
- Credit spreads fell to nearly the lowest level of this cycle, indicating no financial stress
- It's unknown whether stock valuations are irrationally exuberant; the economy continues surprising to the upside