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Originally posted by johnny2127
This reasoning is very off base and overly simplistic. The declining dollar will help some companies, while devastating others. Additionally, there is a correlating relationship between stocks and the dollar. The dollar's rise or decline is reflected in the profit or loss of the business. However, most business that are exposed to dollar price fluctuations, by dollar price hedges. So their exposure is numerated exactly. Additionally, companies take corresponding actions in business to offset movements such as these. Example would be: moving some manufacturing from a country whose currency is relatively strong towards the dollar, to a country with weakness or less strength versus the dollar.
Point is, this theory is incorrect, flawed, and overly simplistic.
Originally posted by johnny2127
But here is simple proof you are wrong. Over the past 80 years the dollar has devalued 95%+. But the stock market is up multiple hundreds of %.
Originally posted by OBE1
Originally posted by johnny2127
But here is simple proof you are wrong. Over the past 80 years the dollar has devalued 95%+. But the stock market is up multiple hundreds of %.
Well , a tad more complicated johnnny....but I'll give you a BINGO!
Thanks for unconsciously supporting my premise , but with all due respect , if your position is that of the adversary , you might want to go back a few posts and begin reading anew.
Originally posted by johnny2127
You aren't understanding what I am saying buddy. They aren't related. The dollar has been crushed the last 80 years compared to other currencies, and yet those markets are up multiple hundreds of percent also.
If there is any correlation, it is more between exceedingly low interest rates, tremendous money supply, and equity market rallies. Nearly all of which turn out to be bubbles.
Originally posted by marg6043
reply to post by grover
But guess what everything have a limit even government spending have to stop one day.