In response to last week's post on the inverse relationship between the dollar and stocks, some readers asked how the relationship between the two assets has played out on a longer term scale. The chart below highlights the performance of the S&P 500 and the US Dollar Index since 2003. In this chart, the dollar is not plotted on an inverse scale. As shown, the two charts have consistently been moving in opposite directions. As long as this trend continues, what's good for the dollar is bad for stocks.