Citigroup ticks at close to 70 cents per dollar of asset value, but nobody cares as yet.
The breaking down of the dollar-risk asset correlation is a trend stock market investors should begin topay attention to, Nordvig suggests.
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Fed purchases should help America's economy by pushing asset prices up and the dollar down, but they may lead to a damaging rise in commodity prices and fuel asset bubbles in emerging economies.
For years, the strength of the dollar and the buoyancy of asset prices in America helped to attract inflows of foreign capital.
Since each asset needs a dollar value, all you have to do is simply pick a date and appraise each item as of that date.
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However, the main way that investors responded to the Fed blowouts of the era was not to bid up consumer prices or anything like that, but to get their holdings out of asset classes that brought dollar returns.
Massachusetts Financial Services, an asset manager, has banned soft-dollar commissions (opaque kickbacks from brokers).
By contrast, the Japanese yen gained against the US dollar because many investors see it as a less risky asset.
But in 1969, as the strains between America's budget deficit and the dollar's gold peg emerged, an artificial reserve asset was created: the Special Drawing Right (SDR), run by the IMF.
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Figures from Barclays Trading Group of Fairfield, Iowa, show that 16% of equity-based hedge funds, designed to be relatively conservative, are leveraged at 100% or more of their asset values, meaning the fund has a dollar or more of debt for every dollar in assets.
Just as central banks in China, India, Russia and many other nations view gold as a monetary reserve protection against the falling dollar, major academic institutions are looking for new asset classes like precious metals and commodities to produce returns that can be put to work as a source of funds for a large portion of college operating expenses.
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The new uptrend in the U.S. Dollar dramatically shifts the landscape of established relationships between the various asset classes.
This could include employing dollar-cost averaging or automatically rebalancing your portfolio when particular asset classes gain or lose value in comparison to others.
Mr Jen argues that these capital outflows need not be a sign that asset managers are gloomy about prospects for either the dollar or the American economy.
The yen also resumed its role as a safe-haven asset as it strengthened against the U.S. dollar.
The dollar reached a four-year high against the yen as the Bank of Japan left its asset-purchase program unchanged.
Despite being a safe-haven asset, the gold market felt selling pressure from a sharply higher U.S. dollar index and generally weaker commodity sector Wednesday.
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Whether managing a business or maintaining the value of an asset, the overarching goal is to maximize the value of the asset for victims, as victims of Ponzi schemes rarely receive more than pennies on the dollar.
This last trend, that of gold as an alternate monetary asset, will be furthered by nations seeking to diversify their reserves as a reaction to a falling dollar with an uncertain future ahead of it.
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