Wall Street: What Will Happen With A Stronger Dollar ?

3D Dollar Sign

As the S&P 500 struggles to hold its 2,000 points, the Dollar is preparing for a strong period of growth in sight of a tightening in the monetary policy, but what does this mean for stocks ?


There’s a very popular chart right now that is making the fellows at Wall Street wonder:

cotd dollar stocks pe

As the USD gets stronger, P/E tends to go up too.

This is probably the strongest evidence to the theory of the “secular bull market”, and one must acknowledge that this looks like a sound hint to what may happen to the S&P 500 in the following years.

However, when a black swan happens, it just happens, no matter how strong the Dollar is.

So if you want a summary of what may happen at Wall Street, here you go: everything’s gonna be alright, until the day it won’t (because crisis DO happen).


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