I just read an article which seems to suggest that the strengthening dollar will make the stock market crash . . . and soon. http://www.zerohedge.com/news/2015-04-09/us-dollar-rally-will-crush-stocks…just-it-did-2008 Your thoughts?
The dollar HAS already rallied, though more could be coming. And yes it has a negative impact on US companies that export the majority of their products but also helps companies that import materials and for foreign investors a strenghtening dollar means profit even if the stock price remains the same.
Yep, the dollar has been picking up gently, I don't know about the crash though. It's a really complex situation and it depends on the commercial situation like you put it crimsong.
Every bit of movement of the US Dollar has big impact on the world market in general. These movements both have positive and negative effects on every thing. All nations literally depend on the dollar, which undeniably makes the United States still most powerful country in the whole world.
Along with numerous other things, this could certainly contribute to a significant market selloff / correction / bear market situation. We haven't had one in a while, and it's just a matter of time. As far as when and how much, I wish I could predict such a thing.
USD strength and Equities I have a different take on the recent strength in USD. I too was concerned about the impact of a strengthening USD but more on emerging market dollar denominated debt causing a crisis. But the market seems to be telling us something different now. USD strength is now positively correlated with Emerging mkt stocks which has not been consistently seen since the 1990's. I'm looking for global equities to move substantially higher.
