Two Great (Cor)Related Articles: Tight Correlations between All Asset Classes & Roubini on Mother of All Carry Trades

Download 2009-11-2 Dollar Calls the Tune for Stocks, Bonds, Oil - 

Download 2009-11-1 FT Roubini Mother of all Carry Trades Faces Inevitable

A joke making the rounds among stock investors is that they've all become currency traders. In recent weeks, the relationship between moves in the dollar and stocks has been incredibly tight; as the dollar rises, stocks fall and vice versa.

And it isn't just stocks. Links between the dollar, corporate bonds, energy prices and gold have grown closer. Traders and analysts point to one factor as the cause: the Federal Reserve's efforts to flood the financial markets with dollars. They say the Fed has created an unusual environment where investors essentially have two choices — hold onto dollars or buy something, anything else.

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