That's not true. Dollar ained value in 90s and Dow still grew Dollar lost value in 2001-2003 and Dow fell Find something better. My guess is inflation and Bernanke is a Russian spy who wants to destroy US by puting US into stagflation
Point well taken. I did not mean to imply an immutable law. Only what is happening "NOW." WHAT IS DIFFERENT NOW IS: Back then foreign central banks were still willing to roll Treasury bonds as they gave "secure" positive returns. Now they give negative returns (in real purchasing power) and certainly they are not "secure." (US can never pay them off - only borrow from Peter to pay Paul*, or run dollar printing presses, and this is being realized by many now.) ---------------------------- *Also, the US is rapidly running out of "Pauls." (China's new investment fund not to roll only into Treassuries, almost all central banks reducing % dollars held in reserves, etc.)
Point well taken. I did not mean to imply an immutable law. Only explain what is happening now (when other factors are very different). Back in 90s, opportunities to make money by investing in US caused a dollar demand and both rising dollar and DOW. (etc. for the converse) Yes, it is different now - Want to buy a GM, Chrysler or Ford plant cheap? etc. For several years best investment are not in the US - take appreciation of almost any ADR for proof. I hold many, bought 5 years ago - average is up 350%. SBS is up more than 700% and still paying very good dividends. Back then foreign central banks were still willing to roll Treasury bonds as they gave "secure" positive returns. Now they give negative returns (in real purchasing power) and certainly they are not "secure." (US can never pay them off - only borrow from Peter to pay Paul*, or run dollar printing presses, and this is being realized by many now.) ---------------------------- *Also, the US is rapidly running out of "Pauls." (China's new investment fund not to roll only into treasuries, almost all central banks reducing % dollars held in reserves, etc.)
noted error too late to correct: It is "Peters", not "Pauls" in my last post footnote US is running out of.
go back and look at at 1995-2000. during that cycle the dollar had huge rallies an huge falls and pundits keep at both times saying it was great for the market. wall street always has a reason why things will go higher. for gods sakes there salesman so they'll always have reasons to buy. but what we should be getting soon is the negative side of a weak $ which is greatly reduced foreign buying and much higher interest rates and inflation
100 straight days without a .2% retracement, here is your headline for the 4 of july. This is going to the moon, the pussy fed is creating a monster, what happens to gas if we get multiple hurricanes this season, and oil goes to 100. Look at unleaded gas all ready. These dopes are playing with fire,the whole world is in an uptrend inflation will spiral out of control, oh the pain!
Watch the Vix gap up 5% this morning, the fix is in. Stock market setting new highs Vix no were near its lows pretty neat trick.