The strength of the dollar has been a constant during 2022. The US dollar has worked as a safe haven for investors in a year where, with the exception of commodities, there has been no place to hide. However, the trend may be reversing, as investors unwind the most crowded trade. As you can see in the chart below, the dollar index wick measures the value of the dollar against a basket of currencies, has corrected almost 10% from its peak. #emergingmarkets should benefit from this trend reversal if sustained, as well as #smallcaps, and other risk on assets. US big caps, with earnings outside the US may get a lift from this effect when they present 4Q results as well.
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