This is why the Chinese are screaming bloody murder to Obama about the 'mother of all carry trades'. It's all about relative value macroeconomics. Weak dollar = more export for U.S. manufactured products. And yes, the U.S. is still the largest manufacturer in the world. Weak dollar = higher equity share prices for U.S. companies with substantial direct or indirect manufacturing net retained earnings exposure. When the stock market share prices come off, the dollar will fundamentally get stronger, and that currency appreciation in dollar-denominated share prices will partially offset the share price decline. In case both share prices and the dollar decline decline and unwind the 'carry trade', the additional hedge is a long position in 'flight to quality' commodity assets like precious metals, certain softs, and hydrocarbon energy. It's all about relative value.