Here's what a weakening U.S. dollar means for stocks
With with with with with with Sully Sully Sully Sully Sully Sully and and and and and and ah, ah, ah, ah, ah, ah, falling falling falling falling falling falling Dollar Dollar Dollar Dollar Dollar Dollar dollars. Looking pretty shaky on DH. That sounds horrible, right? A weaker dollar. Well, it's not actually that bad. If you think about a currency meltdown, a weaker dollar is actually positive for US stocks, but foreign stocks will probably benefit more. There is what's called the Ice US Dollar Index, and that's a measure of the currency against six other Ranger currencies, which are the euro. I think it's the yen. The British pound Killian dollars. Swedish krona Swiss Frank I'm pretty sure that's it Anyway. Way we have fallen to a 22 month low Lord below $94.47 94. 40. Now that means basically our dollars were forced sense. sense. Those Those other other currencies, currencies, and and that that comes comes after after hitting hitting more more than than the the three three year year high high on on March March 22nd 22nd or or we we were were worth worth a a buck buck three three against against all all of of those those so so sort sort of of knowing knowing exactly exactly what what to to make make of of the the dollars dollars Pretty Pretty confusing. confusing. AA AA weaker weaker dollars dollars typically typically seen seen by by the the way way is is a a positive positive for for the the US US economy economy because because weakening weakening dollar dollar means means that that imports imports become become are expensive, but it means that exports are more active consumers. Of course, consumer spending drives are all spending drives GDP, and that's why we sort of like a bee. A strengthening dollar dollar is bad for exports. Ah, but good for imports. So bottom line stocks have done just fine. During the recent dollar bull markets, which have reflected the strength the US economy, But a weaker dollar is not necessarily good for stock. If it reflects some bigger problems, and the bigger problems are, of course, we're in a repression here, So a T end of the day you have three years confuses you were before I started talking about falling taller, but but I will tell you it's not such a bad thing for stocks, and there's evidence why what's going on this morning? Dodgers. NASDAQ SNPL LOOKING CREATE NASDAQ 10,000 For 97 That's 1.2% looking great SPF 30 to 30. The Dow Jones 26 5 50 coming up at 7 20 this week, were to learn the size of the hole. That the U. S economy fell into and covert 19 struck. And what exactly, it means for Ted Ladan it me and you with respect to our to our wallets because there are good economic reports, guys, there's bad ones and in some cases There are ugly ones, and this is going to be an ugly one this week.