Alright, September of 2011, as well as October of 2011 (the month we are still in), we have shown an increase in the stock market. With commodities going high, and stocks surging at an incredible rate. However, as it may show to astonish many people, the United States reported it’s biggest monthly drop in the dollar since 2008. Well, why does a weakening dollar ignite a fire in the stock market to perform better? Here’s the deal, though: We want the value to go down! With the value of the almighty dollar depleting, the United States becomes more competitive in certain markets. You see, the weaker our currency, the better we can compete with other currencies. Our exports are no longer too expensive for other countries to buy. As we become more competitive, it increases the value of our stocks, our economy is increased because the value of our dollar has decreased! At the same time that the dollar dropped, the euro rose to $1.38. With our value dropping, our demand is growing higher, and thus more job oppertunities will become available as our export trading picks up. Our stock market will continue to surge the more the dollar drops, until it finally stabilizes. However, if Europe does not get a hold of their recent economic crisis, we could see a drop in the stock market, Of course, we did see a recent drop in the market, which came in the form of the United States’ credit rating dropping. This scared the stock market much like a hungry eagle might scare a turtle. The market withdrew into it’s metaphorical shell, quit much of what it was doing, and hung out until it no longer saw the metaphorical eagle looming overhead. We have bounced back from that, to an extent, but we’re seeing a domino effect. For instance, Spain’s credit rating was just lowered, Ireland is speaking about needing a possible bailout from the European Union, it’s all very crazy and the market is looking to be a very volatile place in the coming months. There are a few things that have contnually risen in value, no matter what the market is doing, however. Those are minerals and technologies. Minerals such as silver and gold will continue to rise in value. Silver is expected to rise pretty drastically here soon, just as gold has done over the years. Technology is in a constant state of advancement, however be careful on which new technology you choose to invest in. Some make it off the ground and make millions, while others might fail quite miserably.
Is what we’re going through a sign of things getting better or are things about to get much worse? Only time will tell.