Dollar Down + Stock Market Up?

[DallasTrader]

What do you guys think about the dollar continuing to decline as the U.S. stock market goes up?

 

[c.chugani]

its called inflation.

 

[DallasTrader]

Quote from c.chugani:

its called inflation.

I'm aware of that.


Do you think this inverse movement will continue? How will the declining dollar ultimately effect the market? Thoughts?

 

[Sobieski]

Well it isn't the first time in history this has happened.

http://www.nowandfutures.com/us_weimar.html

 

[empee]

will be interesting to see when ever dollar makes countertrend bounce.

 

[c.chugani]

Quote from DallasTrader:

I'm aware of that.


Do you think this inverse movement will continue? How will the declining dollar ultimately effect the market? Thoughts?

i personally am waiting for a bounce to get in and short the dollar.

With speculation on the fed cutting rates further down the line, its seems like the only way to keep the markets at current level is to devalue USD.

They are doing one heck of a good job.

 

[syswizard]

Equity markets remain "in-denial" regarding the ultimate effects of the lower US dollar. However, this irrationality can continue for quite some time. Equity markets actually LOVE inflation.

When it finally "hits" the markets, it will be swift.
Question is: When ?

 

[JamesVU2000]

Most of the growth from the last couple of years is really just inflation. The dollar goes down and everything else goes up. Its a popular move in Zimbabwe

 

[john12]

the tv talking heads have brainwashed us. if the market loves inflation why didn't the market sky in the 70's? this looks like stagflation coming. the market loves whatever way it can rise. if that means talking up strong or weak growth or strong or weak econ news it will do that

 

[JamesVU2000]

I agree. whatever iway it can rise. But if you remember in 2005 it didnt go up that much because the dollar rallied