POLL: The dollar's decline: Stock market collapse or not?

Discussion in 'Economics' started by newestmember, Dec 17, 2003.

  1. Will the decline in the dollar cause a crash in the stock market? How worried are you and are you managing your portfolio (if you have one) accordingly? Or is the whole issue totally overblown?

    Vote in the poll and post your thoughts!

  2. We've seen the market rise during the late 90's from a strong dollar and now we've recently seen a market rise with a weak dollar. Therefore the dollar is not a good indicator alone to try and forecast where the market will be in the future.
  3. Japanese and Chinese in forex, buy more dollor to
    rise US dollor price, Which G.W.Bush didn't like it

    Why? Once Japanese Yen is weaker, more Americans
    buy Japanese products, because Japanese products are
    quoted in Yen, and US dollor can buy more Yen that time.

    Same case is for when Dollor weaken, therefore more
    Japanese can buy american products, because Yen can
    buys more dollor, and less american buy japan products
    because they have to pay more dollor.

    Therefore when dollor weakens, American companies
    can sell their products easier and more and stock prices
  4. Even dollor was strong, but e-business (real internet Boom)
    during that times boosted market with much more force
    than strenght in US dollor, to have any affect on US exports.

    Just look at USD/Yen chart from aguast,03 till date, dollor
    is losing value and stock market is rising. So simple....

  5. ..............one more attempt at a rally could possibly push the ES to as high as the 1120 price range.

    Notice how the market "DID" breakout beyond the 1070 price level only to return once more.

    Repeated closes below this 1070 level will signal the top and the end of this mini bubble.

    Meltdown is immanent!!!

    One more attempt at a test of the new high and thats it folks especially if the attempt to take out the high repeatedly fails.
    For the ES to hit the 1120 price range It would take some unexpected good news like capturing Osama Bin Laden or some tech companies misstated earnings and now they are ALOT HIGHER than what was previously stated or that Employment REALLY IS picking up in the higher wage salaried jobs and NOT just in retail or fastfood minimum wage jobs.

    The truth of the matter is:

    Labor Dept statistics are FALSE.
    Economic recovery statistics are FALSE.

    *during the Q1 of next year you can EXPECT a HUGE decline to commence.

  6. HOWEVER...........

    History "may" repeat itself here.

    Example: The Yen Futures contract dipped into the 80's and so did the Euro a few years ago. But now look at the Euro today???
  7. DK_


    US corporate equity is being pimped out to foreign investors at cheap prices. This is a first - so you can count on it being heavily exploited esp. by Euro-holders regardless of short term overpricing.

    A collapse (500pts+) seems impossible with so many interests ready to prop it up..

  8. I'm not sure that I follow you???:confused:

    Foreign interest has dried up.
    They now seek higher yields overseas.
    cheap dollar hurts exports.
    weak corporate earnings hurt economic recovery.
    absence of higher paying jobs hurt families well being and socioeconomic stability.

    MASSIVE amounts of cash set idle on the sidelines.
    More people to hide money under the mattress unless REAL jobs are created in Q1 04' (Not Wendy's or Mcdonalds or $5.00 per hour jobs)
  9. DK_


    Current foreign direct investment is what is currently causing the dow to rise, demand, not overzealous earnings expectations.
  10. Why would europeans want to invest in an index which has barely appreciated this year after factoring in currency depreciation?
    #10     Dec 17, 2003