Before the recent bearish market conditions, stock prices were growing while the dollar was weakening, which gave many reason to argue that stocks weren't actually gaining any new value in correlation to the lower value of the dollar. At the time, that made sense and I gave some merit to it. However, now I'm thinking that if oil prices fall, or at least have seen their peak, and the dollar actually does start some kind of meaningful recovery, then what does that mean for the US stock markets? Hypothetically speaking, if the lower value of the dollar was already priced into the market, then the recovery of the dollar alongside a return to lower prices in crude would mean: a) higher market prices overall based on earnings growth from lower operating costs as a result of lower energy costs b) higher market prices overall based on future earnings being worth more overall because of the higher value of the dollar c) lower market prices overall based on the rise in the value of the dollar meaning a return to lower prices for stocks as a consolidation since the lower value of the dollar was in fact priced into the growth during that same period of time, regardless of lower operating costs or higher valued earnings d) a raging bull market based on larger profits as a result of lower energy costs, and those increases in future earnings over past earnings being more valuable based on a higher value of the dollar than the past earnings. All of that being said, I still don't believe the US dollar is going anywhere near a full recovery, and I haven't bet against Oil since 2003. But if the talk of lower oil and the return of the dollar do have any merit, would you consider any of those scenarios plausible? And please don't get into the stupid bull/bear arguments about the $600 tax stimulous coupons. The insignificance of those compared to the possible long-term impact of lower oil and a higher value of the dollar are laughable at the very least...