Can the US Stock Rally Continue as the Dollar Declines?
Can the US Stock Rally Continue as the Dollar Declines?
Investor optimism toward US stocks—especially large-cap tech—remains strong, fueled by AI enthusiasm, expected rate cuts, and easing geopolitical risks. Bullish sentiment on the S&P 500 is well above average, while views on oil and the dollar are notably negative amid rising fiscal concerns.
Such one-sided positioning doesn’t guarantee a reversal but can make markets more sensitive to surprises. With so much optimism priced in, even small shocks could trigger sharp moves—making this a strategic moment to consider portfolio hedges.
Picture by Alexander Gray