Although it seems to be clear the market is running up pushed by the tailwinds of liquidity, it needs to have the impulse of earnings to sustain the movement. As you can see in the chart below, there is a high inverse correlation between #eps and the US dollar. It does make economic sense; when the dollar weakens, US dollar denominated products become more attractive to the rest of the world, and therefore, sales go up. On October 2022, we saw the minimum (so far) for the equity market, and the maximum for the dollar index (114). If the dollar weakens further, which is yet to be seen in a hawkish environment, eps may get an extra push, and perhaps is what the market is discounting already.
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