Savvy Investors who do stock investment research usually have a closer watch on many economical markers. One area that has been discussed by our media is the falling dollar. In order to sell what they write, the typical reporter will make anything and everything look disasterous. The subject of the falling dollar is one of them.
When choosing hot stocks to watch, one considers the state of the economy as it is traditionally thought that a falling dollar means a weak economy and a sign of U.S. influence in the world is fading. I don't believe that is so. For instance, if a strong dollar means a stong economy, explain why the strong dollar of 1997 through 2002 also brought a stock market collapse and a recession.
Although the dollar is down against the Euro, the Pound, and the Yen which is not denied, there is always a two sided coin to study. Over the long haul, the dollar is well within normal bounds and is about where it was 10 years ago. We tend to have short memories and compare only the latest thing that was put in front of our faces. The dollar has been very high for quite sometime and, I believe, it has just come down to normal limits. Since the stock market research shows that the highs and lows of the market are mostly driven by people's emotional fears, we see the free stock market quotes sources reflecting client's worries.
A falling dollar can be a good thing. The US has been cutting rates while Europe and Japan has not budged or raised interest rates. This makes the US very attractive for business and industrial activity. The heartland of America is experiencing an industrial surge, the GDP is up a little over four percent, which more than made up for the housing market, and exports rose 25%. What can that mean? For those who worry about the seven hundred billion dollars that we have for a trade defict, watch it shrink with a super growth in exports over the next few years. This will continue to flood into our economy boosting building activity that has alread shown up in the factory sector and corporate profits. For those in the secular progressive movement, corporate profits are a good thing.
Our falling dollar may be the very thing that keeps us out of a recession in 2008. So, when you read your publication of free stock market quotes for hot stocks to watch when you do your stock investment research, read between the lines and shed a little sunlight on the subject. Things aren't as bad as they seem!
