Bullitt
07-25-2020, 08:12 AM
With some 50% of Americans having their wealth tied up in the stock market, a weaker dollar does have it's benefits.
The commodity rally is another reason to believe the market may be looking toward a weaker dollar. Commodities are typically viewed as having an inverse relationship with the dollar, since the dollar is effectively the denominator of a hard asset. Gold prices are up more than 20% year to date, copper just traded to its highest level in more than two years, and silver prices have appreciated 28% this month alone.
While a weaker U.S. dollar may be a slight negative for U.S. consumers’ buying power, for investors’ portfolios the implications are overwhelmingly positive. Commodities are rallying, U.S. multinational companies benefit from foreign buyers being able to afford more of their goods, and international stocks do well as their underlying currencies appreciate.
https://www.barrons.com/articles/office-real-estate-market-faces-slower-growth-and-lower-returns-51595645091?refsec=market-view
The commodity rally is another reason to believe the market may be looking toward a weaker dollar. Commodities are typically viewed as having an inverse relationship with the dollar, since the dollar is effectively the denominator of a hard asset. Gold prices are up more than 20% year to date, copper just traded to its highest level in more than two years, and silver prices have appreciated 28% this month alone.
While a weaker U.S. dollar may be a slight negative for U.S. consumers’ buying power, for investors’ portfolios the implications are overwhelmingly positive. Commodities are rallying, U.S. multinational companies benefit from foreign buyers being able to afford more of their goods, and international stocks do well as their underlying currencies appreciate.
https://www.barrons.com/articles/office-real-estate-market-faces-slower-growth-and-lower-returns-51595645091?refsec=market-view