Currencies Impact Stock Market Profits

2015 started with an eventful January. The continued decline of the Euro versus the US Dollar had a major impact on the stock markets around the world.

During January, the German DAX gained 9.1% and the S&P 500 lost 3.1%.
However, this is before taking into account the impact of currency price developments.

Measured in Euros, the German DAX gained 9.1% during January. However, measured in US Dollars the DAX only gained 1.7% during January.

Measured in US Dollars the S&P 500 lost 3.1% during the month. However, measured in Euros, the S&P 500 gained 3.9%.

 

Stock Market Profits in Dollars and Euros

 

European investors gained during January, regardless if they invested at home or in the US markets.

S&P 500 Trend Signal Email Alert

Following the requests from many of our visitors, we are launching now the S&P 500 Trend Signal Email Alert.

 

If you are just interested in getting an email alert when the long-term trend of the S&P 500 index changes direction, click here.

 

When you sign up for this email alert service, you will get immediately an email from us when the MATI signal indicates a shift in the long-term trend direction.

 

This may happen only once or twice in the few years. We are talking long-term trends here.


Trend Investing Whip-Saw Reality

On August 8th, our MA200S trend signal for the German DAX index turned down. The MA200S is not a signal that we normally publish. However, since I am acting on it myself, I think I owe you this type of information for transparency reasons.

 

Yesterday after the big up-swing in European stock market indices, the MA200S for the DAX has turned up again. Thus next week, I will invest again in DAX related index funds.

 

This movement in the DAX and the MA200S trend signal is a typical example of whip-sawing.


This happens. The signal indicated that the long-term trend is moving down. And then the price action reverses and the signal turns back up again within a matter of weeks or months.

 

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