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

[gartley222]

I believe a craash in the dollar is do. Here is a good site to check out.

http://www.icape.com/markets/dollar/dollar.html

 

[DK_]

Quote from illiquid:



Why would europeans want to invest in an index which has barely appreciated this year after factoring in currency depreciation?

This is a short-term opportunity, but a very-long-term play. These are buy and holders, not tunnel visioned active traders like us.

 

[Bob111]

Quote from illiquid:



Why would europeans want to invest in an index which has barely appreciated this year after factoring in currency depreciation?

they buying US companies @ cheaper price due dollar/euro difference. that why market rising right now on weak dollar.

 

[pspr]

Quote from gartley222:

I believe a craash in the dollar is do. Here is a good site to check out.

http://www.icape.com/markets/dollar/dollar.html

Interesting chart but that site hasn't been updated since May. The dollar is almost to the target they gestimated for Nov.

 

[pspr]

Very true. U.S. assets (corporations, real estate, natural resources, etc.) are very cheap for foreigners right now.

Quote from 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..

 

[illiquid]

Quote from DK_:


This is a short-term opportunity, but a very-long-term play. These are buy and holders, not tunnel visioned active traders like us.

Um how long is long-term? Europeans who had the foresight to buy the Dow at the start of the year are barely beating the return on the 10-yr; so if they buy now they are really going for the long pull?

Just because the stock market keeps going higher in the face of a lower dollar does not necessarily make or dispel any causal relationship between the two.

 

[jasper6]

Interesting read on the subject.



The Dollar Crisis: Causes, Consequences, Cures

Richard Duncan

 

[Free Thinker]

its not so much what the dollar decline does to the us that is the problem. the problem is what the decline does to our trading partners. outside pressures will force them to devalue to try to stay competitive and it could cause a worldwide currency crisis that bleeds over to our market. do a search for reasons behind the 1998 asian currency crisis for possible scenario examples.

 

[newestmember]

http://uk.news.yahoo.com/031221/325/ehl5i.html

http://finance.yahoo.com/q?s=USDEUR=X

 

[newestmember]

Wondering when (and if) people are going to start caring that their dollars are rapidly becoming worth-less...