Currency fluctuation and its impact on stock market

**zdplus** Wed Oct 05, 2005 8:57 pm

Currency fluctuation and its impact on stock market
Hi, Blast and others:

I have no idea how USD currency fluctuation versus
other currency will affect the stock market in general.
Put it more specifically, lots of ppl are talking about USD
crash due to huge federal deficit, although I don't believe
it will really "crash", lots of great investors are bearish on USD
(like buffet , jim rogers, etc.) So suppose there's a big
devaluation of USD, what will the US stock market go in general?
Suppose I put all my USD in cash, if it devalues a lot,
I am dead meat; however, if I put it in stock market,
will it have some kind of hedging functionality against significant
USD devaluation??
Or maybe some category of stock has this functionality? like
gold stock, energy/oil/resource stock? Are they at least
better than pure cash in this sense, can they fully offset
the impact?

Thanks a lot if you all can share your opinions here.

/Zdplus

**blast_investor** Wed Oct 05, 2005 11:49 pm

US dollar already devalued a lot over past couple of years.

However, I do not believe dollar will simply crash down to ground. The change will be gradual day by day.

It is one of the issue that definately changes stocks in various ways. In devaluaing enviroment, any "hard asset" are in favor. That is why oil price is so high right now and I am very bullish on it. If we price oil with other currency, it is still high, but not as high as in US dollars.