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mgsloan t1_j2uyxbb wrote

Pretty graph! However, including the DXY green line for dollars doesn't make any sense. Presumably all of the other assets are being measured in terms of dollars. DXY is an index comparing the strength of the dollar against other currencies, naturally it is not measured in dollars, so it doesn't belong on this graph.

To see why it doesn't make sense to use a percentage derived from a different unit, imagine if the rate of return of the dollar line was instead measured in terms of its value in bitcoin. This would make the dollar appear to be an amazing store of value in 2022!

Including a dollar line would make sense if the chart was of inflation-adjusted returns. In that case, though, the green line would be entirely below 0%, and the other lines would also be shifted downwards.

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Analyst214 t1_j2va97p wrote

I don’t see how the dollar goes with dxy as a return lol

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mgsloan t1_j2vf54e wrote

The text at the bottom says DXY. It's a return when measured in foreign currency (mostly EUR)

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Analyst214 t1_j2vfm23 wrote

But that’s comparing to external factors, a person In the US holding Dollars saw their wealth go negative..euros are irrelevant because an avg persons costs saw increases in real terms in goods in the US that made the majority of purchasing power

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bicepguy t1_j2vp4lq wrote

You are missing the point. OP included DXY to represent dollar returns, the green line. The guy you’re replying to is explaining why it doesn’t make sense to include it.

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Analyst214 t1_j2x9f2r wrote

No I’m agreeing with him lmao, DXY to represent dollar returns is nonsensical …this are author got grilled for another chart similar to this 🤣😂

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Balfegor t1_j2x8y8v wrote

Haha, I was wondering how those results were possible, seeing as my dollars definitely didn't appreciate in value while they were sitting in my bank account last year.

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