The Dollar Could Fall, But That’s Not A Bad Thing

The Dollar Could Fall, But That’s Not A Bad Thing

Article Summary

  • The U.S. dollar faces many headwinds that could force it downward over the next several months.
  • A falling dollar could benefit the U.S. manufacturing sector and stimulate growth.
  • Large cap companies in the S&P 500 derive around 40% of their earnings from international sales and a decline in the dollar should positively impact 2015 earnings.

The almighty dollar has been the war cry of the U.S economy for more than six months and the stock market has risen along with it. Take a look at the correlation between the U.S. Dollar Index and the S&P 500 (SPX) since late October of last year…

 

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