Did we just see a dollar bubble (anti-bubble?) burst? What does this mean for stocks?

Question

I've been into forex as part of my training in trading, and man has the dollar gone through the roof (in a good way) over the past two weeks, and even moreso today as it trucked through huge support and resistance levels developed over months and years!

My initial take is lower oil, higher stocks. Also, I imagine a respectable dollar will begin to attract more foreign investors, who don't need to pay capital gains taxes on our securities. However, matching the oil index with the S&P didn't really show much of a correlation.

What does this mean to the market?

Thanks for your help! Exciting stuff!

Answer 1

The main problem is the war.  The war is costing us so much, in addition to the various bail-outs, that the government has been forced to flood the economy with Dollars to pay for its bills.  More Dollars means that the ones you have are worth less, and when yours are worth less commodities such as oil and gold go up.  The Republicans in their obsession with low taxes and high spending have debased the currency...and is only going to get worse.