The Daily Prophet: America's Stock Price Is Falling Hard and Fast – BloombergQuint

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Bullish bets on the dollar have been toppled as the world’s most popular trade after five months of holding the top spot, a Bank of America Merrill Lynch survey of fund managers found, and hedge funds have cut net long positions to an 11-month low. The chances of the dollar climbing this year against the euro have plunged to just 14 percent, options market pricing implies, according to Bloomberg News’ Lananh Nguyen. “The market’s patience with the how” the Trump “administration handles things” is wearing thin, Vasileios Gkionakis, the head of global currency strategy at UniCredit Bank in London, said in a Bloomberg Television interview.

There are a number of reasons why U.S. stocks aren’t suffering: A weaker dollar would be good for exporters and the diminished odds of fiscal stimulus might curb future Federal Reserve interest rate increases. Although stocks look strong from an absolute basis, with the S&P 500 Index topping 2,400 this week for the first time, on a relative basis, they are laggards. Since mid-March, the S&P 500 has risen just 0.65 percent, compared with a 6.48 percent gain for the MSCI All-World Index excluding U.S. shares. Although the companies in the S&P 500 are on pace to deliver 16.5 percent earnings growth for the first quarter, the strongest since 2011, analysts continue to lower their expectations for the rest of the year, according to Bloomberg Intelligence.

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