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How Does The US Dollar Effect The Stock Market?

Many stock market for beginners guides ignore the impact of how the dollar effects the stock market’s performance.  They don’t realize that dollar strength is an economic factor and that all economic factors are critical to the stock market.  With a strong dollar, the stock market will generally rise.  Consumers have a stronger feeling for their money and therefore will purchase more US products resulting in company earnings rising.  With a weak dollar, the stock market will sell off.  Consumers have a concerned feeling of their money and therefore will purchase less products resulting in company earnings falling.