Don’t look for a stock market bottom until a soaring dollar cools down. Here’s why.

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A soaring U.S. dollar is wreaking havoc in markets. Analysts say it will be hard for stocks to find their footing until the currency cools down.

It will be difficult for the stock market to stop its slide and find a bottom as long as the U.S. dollar keeps soaring versus its rivals, according to market analysts.

See: These 20 stocks in the S&P 500 skidded as much as 21.5% during another brutal week for the market Still, the relationship between a strong dollar and global market turmoil is a “chicken and egg” problem, said Brian Storey, senior portfolio manager at Brinker Capital Investments. The 5-year Treasury TMUBMUSD05Y yield on Friday headed for its highest level since November 2007, while the 2-year yield TMUBMUSD02Y continued its climb toward a 15-year high.

“Until something breaks, probably in the credit markets, the Fed is going to stay hawkish,” Donnelly said. “What eventually breaks this cycle will be blowups in credit and in equities that eventually lead the Fed to send a different message,” he said.

 

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The dollar is soaring simply because Xi is ostracizing China so the Asians are off the Yuan, the Europeans are at war in Ukraine off the euro. Where do you put your money? Answer: the dollar.

Turns around at 118

円高になるでしょう。来週から。

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