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Business, 06.05.2020 00:18 shyannehamilton1183

Security prices are driven by a variety of factors, but corporate earnings are clearly one of the primary drivers. And corporate earnings, on average, follow business cycles. Exchange rates, as they taught in college, reflect the market’s assessment of the growth prospects for the economy behind the currency. So, if securities go up with the business cycle, and currencies go up with the business cycles, why do we see currencies and securities prices across the globe not going up and down together?

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