{"id":865,"date":"2011-09-20T21:09:18","date_gmt":"2011-09-21T01:09:18","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=865"},"modified":"2011-09-20T21:09:18","modified_gmt":"2011-09-21T01:09:18","slug":"the-beggar-thy-neighbor-correlation-david-merkel","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/","title":{"rendered":"The Beggar-Thy-Neighbor Correlation – David Merkel"},"content":{"rendered":"

There are many reasons proffered for the increase in global equity market correlations \u2014 I would like to offer one more: competitive devaluation of currencies, a.k.a., the race to the bottom. Almost all nations are looking to cheapen their currencies in order to encourage exports.<\/p><\/blockquote>\n

via The Beggar-Thy-Neighbor Correlation – Seeking Alpha<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

There are many reasons proffered for the increase in global equity market correlations \u2014 I would like to offer one more: competitive devaluation of currencies, a.k.a., the race to the bottom. Almost all nations are looking to cheapen their currencies in order to encourage exports. via The Beggar-Thy-Neighbor Correlation – Seeking Alpha.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,57],"tags":[771,1265],"class_list":["post-865","post","type-post","status-publish","format-standard","hentry","category-forex","category-stock-markets","tag-competitive-devaluation","tag-equity-market-correlation"],"yoast_head":"\nThe Beggar-Thy-Neighbor Correlation - David Merkel - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Beggar-Thy-Neighbor Correlation - David Merkel - the patient investor\" \/>\n<meta property=\"og:description\" content=\"There are many reasons proffered for the increase in global equity market correlations \u2014 I would like to offer one more: competitive devaluation of currencies, a.k.a., the race to the bottom. Almost all nations are looking to cheapen their currencies in order to encourage exports. via The Beggar-Thy-Neighbor Correlation – Seeking Alpha.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2011-09-21T01:09:18+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"The Beggar-Thy-Neighbor Correlation – David Merkel\",\"datePublished\":\"2011-09-21T01:09:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/\"},\"wordCount\":59,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"keywords\":[\"competitive devaluation\",\"equity market correlation\"],\"articleSection\":[\"Forex\",\"Stock Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/\",\"name\":\"The Beggar-Thy-Neighbor Correlation - David Merkel - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2011-09-21T01:09:18+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Beggar-Thy-Neighbor Correlation – David Merkel\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. Strategic. Unfiltered. \",\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/thepatientinvestor.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\",\"name\":\"The Patient Investor Pty Ltd\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"width\":250,\"height\":250,\"caption\":\"The Patient Investor Pty Ltd\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\",\"https:\/\/www.instagram.com\/colin_thepatientinvestor\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\",\"name\":\"ColinTwiggs\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"caption\":\"ColinTwiggs\"},\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Beggar-Thy-Neighbor Correlation - David Merkel - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"The Beggar-Thy-Neighbor Correlation - David Merkel - the patient investor","og_description":"There are many reasons proffered for the increase in global equity market correlations \u2014 I would like to offer one more: competitive devaluation of currencies, a.k.a., the race to the bottom. Almost all nations are looking to cheapen their currencies in order to encourage exports. via The Beggar-Thy-Neighbor Correlation – Seeking Alpha.","og_url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/","og_site_name":"the patient investor","article_publisher":"https:\/\/www.facebook.com\/profile.php?id=61572934660810","article_published_time":"2011-09-21T01:09:18+00:00","author":"ColinTwiggs","twitter_card":"summary_large_image","twitter_misc":{"Written by":"ColinTwiggs"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#article","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/"},"author":{"name":"ColinTwiggs","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5"},"headline":"The Beggar-Thy-Neighbor Correlation – David Merkel","datePublished":"2011-09-21T01:09:18+00:00","mainEntityOfPage":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/"},"wordCount":59,"commentCount":0,"publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"keywords":["competitive devaluation","equity market correlation"],"articleSection":["Forex","Stock Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/","url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/","name":"The Beggar-Thy-Neighbor Correlation - David Merkel - the patient investor","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/#website"},"datePublished":"2011-09-21T01:09:18+00:00","breadcrumb":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/thepatientinvestor.com\/"},{"@type":"ListItem","position":2,"name":"The Beggar-Thy-Neighbor Correlation – David Merkel"}]},{"@type":"WebSite","@id":"https:\/\/thepatientinvestor.com\/#website","url":"https:\/\/thepatientinvestor.com\/","name":"The Patient Investor","description":"Smart. Strategic. Unfiltered. ","publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/thepatientinvestor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/thepatientinvestor.com\/#organization","name":"The Patient Investor Pty Ltd","url":"https:\/\/thepatientinvestor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","contentUrl":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","width":250,"height":250,"caption":"The Patient Investor Pty Ltd"},"image":{"@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/profile.php?id=61572934660810","https:\/\/www.instagram.com\/colin_thepatientinvestor"]},{"@type":"Person","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5","name":"ColinTwiggs","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","caption":"ColinTwiggs"},"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-dX","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":13781,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/08\/13\/a-currency-war-has-begun-2\/","url_meta":{"origin":865,"position":0},"title":"A currency war has begun….","author":"ColinTwiggs","date":"August 13, 2015","format":false,"excerpt":"The Federal Reserve, Bank of England, European Central Bank and Bank of Japan all expanded their balance sheets (commonly referred to as quantitative easing or QE for short) post-2008 to counteract a contracting money supply and prevent a deflationary spiral. These actions also have the beneficial effect of weakening the\u2026","rel":"","context":"In "Market Insights"","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"Spot Gold","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-13-currencywar.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":12223,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/08\/22\/chinas-dangerous-currency-manipulation\/","url_meta":{"origin":865,"position":1},"title":"China’s dangerous currency manipulation","author":"ColinTwiggs","date":"August 22, 2015","format":false,"excerpt":"I am surprised at John Mauldin's view in his latest newsletter Playing the Chinese Trump Card: ....This whole myth that China has purposely kept their currency undervalued needs to be completely excised from the economic discussion. First off, the two largest currency-manipulating central banks currently at work in the world\u2026","rel":"","context":"In "China & HK"","block_context":{"text":"China & HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"Foreign Reserves","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-19-fxreserves.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-19-fxreserves.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-19-fxreserves.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":10397,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/26\/diversification-the-only-free-lunch-in-investing\/","url_meta":{"origin":865,"position":2},"title":"Diversification – the only ‘free lunch’ in investing","author":"ColinTwiggs","date":"July 26, 2014","format":false,"excerpt":"Diversification is often referred to as \"the only free lunch in investing\" because it affords investors the opportunity to reduce investment risk without reducing returns. Most investments involve a trade-off between risk and return, with higher returns requiring investors to expose themselves to greater risk. But effective diversification allows investors\u2026","rel":"","context":"In "Investment Strategy"","block_context":{"text":"Investment Strategy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/investment-strategy-2\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13853,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/26\/diversification-the-only-free-lunch-in-investing-2\/","url_meta":{"origin":865,"position":3},"title":"Diversification – the only ‘free lunch’ in investing","author":"ColinTwiggs","date":"July 26, 2014","format":false,"excerpt":"Diversification is often referred to as \"the only free lunch in investing\" because it affords investors the opportunity to reduce investment risk without reducing returns. Most investments involve a trade-off between risk and return, with higher returns requiring investors to expose themselves to greater risk. But effective diversification allows investors\u2026","rel":"","context":"In "Momentum Investing"","block_context":{"text":"Momentum Investing","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/momentum-investing-2\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17768,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/01\/22\/cautiously-bearish\/","url_meta":{"origin":865,"position":4},"title":"Cautiously bearish","author":"Colin Twiggs","date":"January 22, 2019","format":false,"excerpt":"In my last newsletter I said: \"We are witnessing the transition from a bull to a bear market......It's time to be cautiously bearish.\" What does \"cautiously bearish\" mean? There are two types of bear markets. First, is the October 1987-style blow-off, where the market goes over a cliff into an\u2026","rel":"","context":"In "Stock Markets"","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":828,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/19\/chart-of-the-day-decoupled-from-reason-macrobusiness-com-au\/","url_meta":{"origin":865,"position":5},"title":"Chart of the Day: Decoupled from reason – macrobusiness.com.au","author":"ColinTwiggs","date":"September 19, 2011","format":false,"excerpt":"First, from long term successful commodity trader Peter Brandt: It has come to be known as the \u201crisk-on\/risk-off\u201d or \u201call-one-market\u201d phenomena in global markets. It is a situation where seemingly unrelated markets have taken on an historically high correlation. Individual markets seem to be the proxy for all other markets.\u2026","rel":"","context":"In "Stock Markets"","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=865"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/865\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}