[Boards: 3 / a / aco / adv / an / asp / b / biz / c / cgl / ck / cm / co / d / diy / e / fa / fit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mu / n / news / o / out / p / po / pol / qa / r / r9k / s / s4s / sci / soc / sp / t / tg / toy / trash / trv / tv / u / v / vg / vp / vr / w / wg / wsg / wsr / x / y ] [Home]
4chanarchives logo
GFC - Why?
Images are sometimes not shown due to bandwidth/network limitations. Refreshing the page usually helps.

You are currently reading a thread in /biz/ - Business & Finance

Thread replies: 11
Thread images: 1
File: why.png (53 KB, 686x430) Image search: [Google]
why.png
53 KB, 686x430
Why did the US dollar start going down when the S&P 500 started going back up?

Why the fuck would US share market indexes going up make their dollar weaker against other dollars?

Is there something I'm missing here???
>>
Earnings have been down for four straight quarters yet indexes are reaching all time highs. Think about that. Why would the index go up if the value of these companies are going down? It's because the dollar is losing value.
>>
>>1383007
This is so slick it's making my brain explode. Lmaoing
>>
Stable US market and lower dollars = more foreign investments. Everyone's parking their money in US securities.
>>
>>1383007
Wouldn't this mean the USD should be stronger? Not weaker.

How can the index be going up if both earning and the dollar are becoming weaker?
>>
>>1383079
Why would US markets doing well make other other currencies better? Surely the number one benefactor of a rising index should be the dollar, no?
>>
>>1383007
or companies are posting inflated earnings
>>
>>1383247
You're asking the wrong question. Other currencies doing better is making US markets doing well. It's how bubbles work.
>>
>>1383241
No because foreign investment is what is driving the indexes higher. Other country's currencies are doing well and they're parking their dollars into US investments since they are relatively stable.

>>1383247
Don't think of it like that. Think of it as other country's economies (and currencies) are doing better so they then invest into US securities markets. Don't think of the wagon as leading the horse, one before the other mate.

The number one benefactor of a rising index is an increase in investment from anywhere and everywhere. Doesn't matter what currency is being invested. Look up how the indexes are calculated and it should provide some clarity to your situation.
>>
>>1383279
What currencies? How do other currencies doing well make the S&P stronger?

Why did the announcement of no rate cuts for the UK make the S&P go up, if it made the GBP tank?
>>1383286
I think I understand how indexes work, but wouldn't most companies based in the US have a performance that is correlated to the value of the dollar?

Or does that just not matter, because other currencies will buy USD when it's cheap and then invest slowly driving the currency back to where it is now?

Are you telling me it doesn't matter much at all if a domestic currency is doing mediocre/poorly?
>>
>>1383299
>http://www.investopedia.com/terms/f/foreign-investment.asp

>http://www.econlib.org/library/Enc/InternationalCapitalFlows.html

Just do some research man. You're closer than you think.
Thread replies: 11
Thread images: 1

banner
banner
[Boards: 3 / a / aco / adv / an / asp / b / biz / c / cgl / ck / cm / co / d / diy / e / fa / fit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mu / n / news / o / out / p / po / pol / qa / r / r9k / s / s4s / sci / soc / sp / t / tg / toy / trash / trv / tv / u / v / vg / vp / vr / w / wg / wsg / wsr / x / y] [Home]

All trademarks and copyrights on this page are owned by their respective parties. Images uploaded are the responsibility of the Poster. Comments are owned by the Poster.
If a post contains personal/copyrighted/illegal content you can contact me at [email protected] with that post and thread number and it will be removed as soon as possible.
DMCA Content Takedown via dmca.com
All images are hosted on imgur.com, send takedown notices to them.
This is a 4chan archive - all of the content originated from them. If you need IP information for a Poster - you need to contact them. This website shows only archived content.