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Equities in the US are priced in dollars. If you think the dollar is going to lose value(because the government is led by people who have repeatedly told you th
by 01100011 1y ago
Equities in the US are priced in dollars. If you think the dollar is going to lose value(because the government is led by people who have repeatedly told you this is their goal) then you expect stocks to rise commensurate with the devaluation of the dollar. I am not a bitcoiner or saying the USD is done for, but it seems clear that the dollar is weakened and will continue to weaken and this is a significant risk for folks like me with minimal exposure to stocks and precious metals.
- dh2022 1y agoWhy would stocks raise with commensurate devaluation of the dollar? Stocks financial positions (assets / liabilities / cash flow) are most likely denominated in dollars..... If companies' financial position would be denominated in something else (gold / Yen / Euros / CNY) this comment would make more sense to me....
- mattfca 1y agoyou understand that costs rise on devaluation of the dollar right? as the usd devalues these stocks will also skyrocket profit/revenue
- anon291 1y agoCompanies values are what they are. Equities are essentially their own currency. The denomination of their conversion price doesn't change their value. The listed price on the nyse or NASDAQ can be thought of the exchange price between an equity and USD. If the USD loses half its value, the value of Microsoft does not change.