Beginning in January 2017 the dollar index nosedived and, as we know, the stock market rocketed higher by 25%. This makes sense as multinational earnings in other currencies would be higher when converted to dollars for companies listed on US exchanges. However, in January 2018 the dollar trade reversed and it looks like the dollar is up ~10% with room to run. Concurrently, stock market volatility has increased, I assume because expectations for earnings are being lowered due to FX effects. Am I wrong to worry about a stock market slump for the rest of the year, particularly in tech?
Submitted May 18, 2018 at 11:07AM by cedarapple https://ift.tt/2IQQduA
