FACTBOX-S&P 500 performance during USD bull/bear markets

NEW YORK, Oct 29 (Reuters) - For more than 35 years, the
U.S. stock market and the U.S. dollar were close partners in
good times and bad.

But that hasn't been the case in 2008 and 2009. Since then,
the dollar's pain has been the stock market's pleasure and vice
versa. The dollar peaked on a closing basis on the same day the
S&P 500 bottomed out.

Following that day in early March, the S&P 500 stock index
.SPX has gained 57.6 percent to the close Thursday, while the
dollar has fallen almost 15 percent.

This is more than three times the average percentage growth
in the S&P during dollar bear markets going back to 1973,
according to analysts at Bespoke Investment Group. On average,
the S&P 500 gains about 15 percent during bearish dollar
periods, but rises nearly 60 percent during boom times for the
greenback.

The change in the relation took place in 2008, when
risk-averse investors shunned stocks and fled to safe-haven
assets. The dollar rose nearly 25 percent, while the stock
market fell by 50 percent.

The pickup in global trade has made U.S. companies more
diversified and thus more sensitive to fluctuations in the
dollar, Bespoke said in a note.

"Companies generating more than half of their sales outside
of the U.S. benefit when the dollar declines in value," Bespoke
said.

Another reason Bespoke gave for the rising inverse
correlation between equities and the dollar is stocks are
increasingly becoming commoditized in the way they are traded.

According to the group, the popularity of ETFs is proof
that an increasing amount of the volume in equities is the
result of investors simply "wanting exposure to stocks" rather
than betting on particular companies.

Like other commodities, then, "when all else remains equal,
an increase in the value of the currency they are traded in
will result in lower prices."

Following is a table with the performance of the S&P 500
during the most recent bear and bull U.S. dollar markets, as
measured using the dollar index .DXY.
Bull/Bear Begin End .DXY Days S&P 500

pct chng pct chng
------------------------------------------------------------
Bull 7/6/1973 1/23/1974 20.9 201 -4.16
Bear 1/23/1974 10/30/1978 -25.1 1,741 -2.07
Bull 10/30/1978 2/25/1985 100.7 2,310 88.54
Bear 2/25/1985 12/31/1987 -48.2 1,039 37.86
Bull 12/31/1987 6/14/1989 23.7 531 31.06
Bear 6/14/1989 2/11/1991 -23.8 607 13.82
Bull 2/11/1991 7/5/2001 50.2 3,797 230.79
Bear 7/5/2001 4/22/2008 -41.0 2,483 12.85
Bull 4/22/2008 3/9/2009 24.9 321 -50.83
Decline* 3/9/2009 10/29/2009 -14.9 234 57.59

Average - Dollar Bull Markets 59.08

Average - Dollar Bear Markets** 15.62
* Current decline is less than the 20 percent that defines a
bear market
** Does not include current decline.
Source: Bespoke Investment Group, Reuters
(Reporting by Rodrigo Campos; Editing by Kenneth Barry)