Good News for US Markets
Now that stocks and the dollar are moving in tandem again, it could be a signal for investors to put more money into US assets. For much of the 2009 rally off the March lows the two entities had been in reverse lockstep. When the dollar would fall, stocks would rise and vice versa.
For much of the 2009 rally off the March lows the two entities had been in reverse lockstep. When the dollar would fall, stocks would rise and vice versa.
It's worth mentioning that an appreciating U.S. dollar could cut into exports. The greenback got pummeled for much of 2009, but has been rising lately as the Euro and British pound suffer under the weight of Europe's economic problems. For now, futures prices suggest the dollar is expected to end the year up only about 1%.
