USD The Dominate Factor Over The Past YearNovember 10, 2014
According to our Gavekal Factor Scoring Model, the US dollar has been the most highly correlated factor (out of 30) with the MSCI World Index over the past year (which is why we have been focusing so much of our attention on it over the past few months). It has had a 0.98 correlation with the MSCI World Index. On the other end of the spectrum, free cash flow yield has been completely uncorrelated to the market over the past year. Over the past week, one-month change in EPS estimates had the highest correlation, and by a fairly large amount, to the market at 0.77.