The second reason is a derivative from that one. Stock markets could show hidden time of inflation. Since there are too mant dollars in the economy, rising of the stock market indicates not only increasing of US companies’ value, but mostly the devaluation of US currency. I just want to show you the following chart: Chart #2 | S&P 500 in Gold terms and Dollar Index Monthly Source: CME data, FPA Calculations It is called “feel the difference”. In fact, here we calculated S&P 500 Index value not in US Dollars but in Gold. Here we see that right from 2008 S&P index is fallen, and there is no growth at all. This growth is artificial that based on devaluation of US Dollar and may be due to some other processes – absolutely inflationary growth. From that perspective link between Currency dynamic and stock market shows higher relation. Pipruit: And what we can do to reduce the probability of such losses? Commander in Pips: The most common approach to this is to use not just one but two MAs on the chart. Pipruit: I have no words to say. This is just outstanding. But result of this could be awful… Commander in Pips: Yes, sooner or later, the World's economy will be collapsed by a US Dollar default. Currently it costs much lower than it is quoted, but system now is still working. Although the dollar is overpriced, but goods are under priced in terms of dollar – and everybody behaves as if nothing is going on. This attempt to not see the obvious things leads to the system still working for now.