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The Tell: Be worried when the dollar and stocks rise together, analyst says

Equities and the U.S. dollar have long tended to enjoy an inverse relationship where if one goes up the other tends to go down. But the pattern was breached this week, and it’s sending a worrying message about investors’ attitude toward risk and valuations, one analyst says.

Case in point, while stock indexes have broken record highs since the beginning of the year, the dollar, measured by the ICE U.S. Dollar Index DXY, +0.01% that matches the greenback against six rivals fell 7.4%.

Mark Hulbert:What the plunging dollar really means for stocks

Over the past week, however, they’ve been moving in the same direction, with the S&P 500 SPX, +0.51% and the Dow Jones Industrial Average DJIA, +0.22% remaining buoyant, with the dollar index headed for a monthly gain for the first time this year.

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