Should the Markets Get Giddy When the Dollar Weakens?

Here’s an interesting snippet we found in the bowels of Tom Lauricella’s nice Journal piece focusing on yesterday’s market action:

Over the long term, a declining dollar is usually a negative for U.S. markets, because it makes them less attractive to foreign investors and drives up inflation by making imports more expensive. In the short term, as seen in Tuesday’s markets, the dollar’s decline has been giving a lift to U.S. stocks. In part that’s because it helps inflateSource: MarketBeat RSS Feed