Stock Markets Exposed
What impact will the improving US Trade Balance have on the US stock market?
Since reaching a record high of $69.9billion last August the US trade deficit fell to $64.3bln in Sep, $58.8bln in Oct, $58.2bln in Nov, $61.5bln in Dec and to $59.1bln in Jan07. The trend has changed with the declining dollar. What will be the impact on the US financial markets?
Public Comments
- stock market effects your every day life makes things cheaper or more expensive so be thrifty and good luck
- Trade balance in and of itself doesn't matter; declining dollar does. Companies that do well in declining-dollar situations are those that either export a lot or compete with imports in the domestic markets or have substantial (and profitable) operations abroad.
- As long as it doesn't have an effect on any other factors of GDP, increasing net exports encourages growth, which encourages stocks.
