Something doesn't make sense to me. If a falling dollar is really the Kiss of Death, then look at this chart: http://www.bullandbearwise.com/DXYChart.asp The dollar fell severely from late 02 to early 05. However, this same time frame was a bull market. The market rose powerfully from early 03 all the way until the subprime crisis. http://stockcharts.com/charts/YieldCurve. In fact, if you look compare these two charts you would conclude that a falling dollar is actually good for the market. Of course, I don't believe that: a falling dollar is essentially a global vote against our economy. But what gives? Why the conundrum? And, finally, couldn't one argue that what actually is killing the market has nothing to do with the market since the market began faltering only when the subprime disaster revealed itself. And that's just pure earnings. Maybe the dollar is less relevant than we think and earnings are everything to the market itself? Has the world gone mad?
The world has been quite mad for some time now. The market is rising on liquidity, which has directly to do with a falling dollar. This topic has been discussed ad naseum here.