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Bleys@lemmy.world â¨3⊠â¨days⊠agoSPY is up 3% YTD while DXY (which measures the value of a dollar) is down 9% YTD. If you own shares of SPY, then you hold them in dollars, so the real change in value of your stock is [share price] x 1.03 x 0.91, which translates to being down over 6%.
BUT not only is your investment value down, if you live in the US you presumably get paid in dollars as well. Which means youâve gotten a 9% pay cut since the start of the year.
blarghly@lemmy.world â¨2⊠â¨days⊠ago
Does DXY have inflation included in its calculation?
Bleys@lemmy.world â¨2⊠â¨days⊠ago
DXY measures the US dollar against every other currency. So if the US dollar in isolation had a bunch of inflation (e.g. because the US government printed a ton of money), then that would be reflected in DXY.
But if every major currency printed a ton of money at the same time, then DXY would not change because itâs only relative to other currencies.
So it doesnât calculate inflation directly, but itâs generally correlated with it.
JackbyDev@programming.dev â¨2⊠â¨days⊠ago
I hate that we donât have a unique term for inflation due to increasing prices versus printing a shit ton of money.
blarghly@lemmy.world â¨2⊠â¨days⊠ago
That was informative. Thank you!