Short Term Trading Member Forum

[Blackbelt1]

PMiles--

Referring to the falling dollar, you wrote:
"I guess this bodes well for the stock market in dollar terms since stocks are liekly to rise in $'s just in oreder to maintain their 'absolute value'."

We're getting into funny-mentals here, but a comment is warranted. The market has an interesting way of turning negatives into positives, and then flipping a positive to a negative unexpectedly.

So initially the falling dollar boosts the market, but at some point, the shadow side emerges. When inflation and especially rising interest rates really start to cook, the stock market will smell the rat.

Sticking with cycles is the only way to go. It is too difficult to tell how and when the market will foresee and interpret the consequences of the falling dollar. At some point it becomes a negative--but when?

Just my take.

Black