The S&P 500, as seen from outside the dollar zone

With the news that the stock market is now officially in “correction” territory (it’s down 10% since October), I thought it might be interesting to check how bad things look if you adjust for the decline in the dollar. So I adjusted the S&P 500’s performance this year to reflect the value of the dollar in a trade-weighted basket of foreign currencies calculated by the nice people at the Fed. And while not exactly earth-shattering, it is at least worth a chart: