SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Zeev's Turnips - No Politics
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Zeev Hed who wrote (81008)6/18/2002 8:46:52 PM
From: t2  Read Replies (2) of 99280
 
Zeev, Can you or anyone else explain how a falling dollar would be bad for stocks?

Bonds and even cash in dollars loses value. Stocks as well but they also benefit from the weaker currencies..and therefore there should be relative outperformance of equities over bonds.

If it is a question of funds leaving the US, one would think that most European/Asian funds are sitting in US government bonds..yet there is no selloff in this group.

I can understand how a weaker dollar would hurt the small caps but the large caps should be rallying in such an environment as investors bail out of bonds and put funds into stocks as their value is not as strongly linked to currency..and gain from better competitive position.

We see so often how Japanese exporters gain as the YEN goes down...so I don't see why US stocks won't just a little a bit like this. I realize the situations are not the same but would there not be at least some similarity. Most Dow names are multinationals.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News