Q & A: What does a weak dollar mean for the stock market?

By: Stacey Nickens

The Invesco Dollar Index Bullish fund dropped throughout this week, falling to its lowest level since March. This shift has been driven by the Fed’s easy monetary policy as well as the federal government’s easy fiscal policies. What does the weaker dollar mean for securities? A weak dollar means U.S. goods are cheaper than in other countries. This attracts outside investment and drives up the stock market. For example, crude oil and precious metals performed strongly on Monday as the value of the dollar declined. Stocks tied to crude oil and precious metals also gained.

Read more about the stock market this week and other positions to watch. 

Source: stockcharts.com

Disclosures: Past performance is not a guarantee or a reliable indicator of future performance. All securities carry a unique set of risks subject to a variety of factors. There is no guarantee that these investment strategies will work under all market conditions or that they are are suitable for all investors. This material has been distributed solely for informational purposes and should not be considered as individual investment advice or recommendation. Individuals should consult their investment professional prior to making an investment decision.