If our $ call is right, correlations may change big time!

Our longer term dollar call for a while now is simply this: The US dollar entered a multiyear bull market after bottoming in March 2008. If that proves correct, it is likely we will witness some major changes in correlations that seemed to be such layups during the US dollar 7-year bear market phase. Many of us just assume the recent past will be projected into the future. But maybe the less recent past is a better guidepost.