While the logic of a falling dollar is good for stocks appears sound, it's flawed not only because stocks have risen significantly as the dollar rose in value, even until just recently, but also the fact that smart money, a group significantly more disciplined and skilled at anticipating future direction, continue to accumulate the decline. An unexpected reversal is only a matter of time and energy. The message of the dollar market, outside consensus driven headlines, is bullish energy is rising.
Headline: The Dollar Swoon Lifting U.S. Stocks Is Seen Continuing
A growing investor consensus that the weak dollar will keep weakening is rippling around the world, fueling rallies in everything from U.S. stocks to commodities.
The dollar has been suffering through one of its worst stretches in years, weighed down by scant inflation and doubts whether the Federal Reserve will raise rates anytime soon.
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