tag:blogger.com,1999:blog-6616959642391988608.post8548915310073938354..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Weaker dollar, stronger equities?Scott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6616959642391988608.post-38701730315728373462009-04-13T11:26:00.000-07:002009-04-13T11:26:00.000-07:00Inflation, if happening because of monetary policy...Inflation, if happening because of monetary policy is good for stocks. However, inflation because of OPEC cartels, or a general downfall in productivity is bad for stocks. <BR/><BR/>If dollar is going to loose half of its value, only being in equities can protect it. <BR/><BR/>If monetary easing leads to inflation, tangible assets will always rise lesser than the equity of the company which is Sumit Pungliahttps://www.blogger.com/profile/04229929199032648562noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72450643077442243482009-04-03T08:01:00.000-07:002009-04-03T08:01:00.000-07:00Higher expected future inflation coupled with a be...Higher expected future inflation coupled with a bear market rally?Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-56268893247493661292009-04-02T16:18:00.000-07:002009-04-02T16:18:00.000-07:00Inflation is typically bad for stocks (not always ...Inflation is typically bad for stocks (not always though). Suppose you knew that the dollar would lose half its value over the next year: would you be more or less interested in buying stocks? I think it's clear your desire to buy stocks would decrease, because they are not likely to produce the same return as tangible assets, which would tend to rise in price in proportion to the dollar's Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-60025395528365026292009-04-02T15:23:00.000-07:002009-04-02T15:23:00.000-07:00Wouldn't it be at least partly because of these re...Wouldn't it be at least partly because of these reasons:<BR/>- A weaker dollar makes domestic products more competitive in foreign markets, and therefore stimulates sales and increases earnings;<BR/>- A weaker dollar makes US equities seem less expensive and therefore more attractive to foreign investors?Anonymoushttps://www.blogger.com/profile/09860847248826335597noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-91010800946503988562009-04-02T15:17:00.000-07:002009-04-02T15:17:00.000-07:00In my opinion it's all a question of relative pric...In my opinion it's all a question of relative prices: stocks are assets priced in dollars. If those dollars start to worth less then you need more dollars to buy the assets.<BR/><BR/>Remember 'the run for safety' that has been with us for the past year? well the winds are starting to turn... :)Mati Vivaldihttps://www.blogger.com/profile/14046954109288170109noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-8587721367887530892009-04-02T11:08:00.000-07:002009-04-02T11:08:00.000-07:00fboness has a good reason for a rising stock marke...fboness has a good reason for a rising stock markets with a weaker currency. <BR/><BR/>Markets are showing inflation period ahead.Sumit Pungliahttps://www.blogger.com/profile/04229929199032648562noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-3908580398956091112009-04-02T08:53:00.000-07:002009-04-02T08:53:00.000-07:00Stocks adjust for inflation? Zimbabwe's stock mark...Stocks adjust for inflation? <BR/><BR/>Zimbabwe's stock market was the best performing in the world in nominal terms even as the currency went out of control.fbonesshttps://www.blogger.com/profile/05636200338746518234noreply@blogger.com