Weaker Dollar: I Have Begun Questioning What I Was Taught

2026-03-11 13:51:40 ET

The dollar index ( DXY ) hovers near 4-year low

The dollar index (aka the DXY index) is a macroeconomic parameter that I follow regularly. Overall, the index has been on a downward trend since peaking at around 114 in late 2022, as you can see from the following chart. Currently, the reading is 98.9 as of this writing and is among the lowest levels in about 4 years. I’ve been studying and reading about the effects of a weak dollar since graduate school, and the prevailing view that I’ve learned suggests that a weaker dollar is good for the SP500 (or other similar equity indices such as the DJI , NASDAQ , or small-cap RTY ). This view certainly has merits, is supported by a good amount of empirical data, and has helped me make many good investment decisions in the past....

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