Is the volatile stock market a result of the plunging dollar?
Well, the stock market is volatile and one of the effects of it is the dollar. When the US dollar falls in value, that means that US stocks are more attractive to foreigners to buy because they can get more stocks for their strong Yen and Canadian dollars and Euros. In general, if you have a very weak currency, that can be negative for your economy and stock market. An extreme example, you had hyper inflation in Argentina, Brazil or Russia, the whole country can implode. Now we are nothing near that, but a weak dollar is generally not good for your stock market. It also means your assists are being sold left and right. Our technologies companies, our food companies, our banks are being bought by foreigners around the world because they have these strong currencies and if our stock prices is relatively weak it makes it easy to buy up these kinds of companies and will continue to do so.
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