Ask an expert: Is a weak dollar good for US?
MSN Money's Anthony Mirhaydari explains how a cheap currency might be necessary to help the economy recover.
In this video, MSN Money's Anthony Mirhaydari explains why a cheap greenback could actually help the U.S. recover and how to invest in such an environment.
Mirhaydari looks at the growth drivers for the U.S. economy. The problem is that one growth driver, the government, currently can't spend more because of its debt load -- if anything, it has to spend less.
Another major growth driver is U.S. consumers, who are also tapped out.
What's left, then? International consumers, who are hungry for U.S-made products, as long as they're cheap enough. That's where a weak greenback comes to the aid of American exporters.
For investors, a weak dollar means they have to concentrate on commodities, because they are affected by the dollar value and on foreign stocks.
The discussion about the dollar and its effects on the economy and current trading environment continues over at MSN Money's Facebook community
As a high schooler in the 60's I remember the picture of a woman in Argentina with a wheelborrow full of paper money. The caption, "woman going shopping in inflation riddled economy". So Anthony is this what you have in mind? So when you talk about Americans making stuff for the rest of the world. Where are the factories to make the stuff. Where are the trained employees to design build and sell this imaginary stuff? And who are these imaginary rich buyers? You see Anthony we are very rapidly becoming an illiterate state and an illiterate economy. You find the illiterate economy exploding here in America now. This is an underground person to person exchange with no tax, no record, and no guarantee. There has never been a productive improvement with any underground economy. It is hand to mouth day to day with no investment in the future. It is called survival mode. And where do you find survival mode? Countries that have been over run by socialists who always claim to defend and be loyal to the poor yet the poor only suffer more and the rich who support the socialists politicians out of fear live the milk and honey lifestyle. We are getting here much too rapidly. JMHO
Beginning of public indoctrination of inflating our way out of debt? Retired on a limited income, I know inflation will be just great for me. I'm already getting .5% on my savings. I figure these types of solutions are made by people who give a sh... less about the masses.
WOW! MSN REALLY PUSHING THE OBAMA PROPAGANDA! WHATEVER HE DOES IS GOOD AND RIGHT FOR THE COUNTRY!
I GUESS LIKE PELOSI SAID UNEMPLOYMENT AND WELFARE AND FOODSTAMPS ARE GOOD FOR THE ECONOMY! JOKE!
I GUESS THE REGULATIONS ON CHEAP ENERGY WERE GOOD FOR HIGH GAS ENERGY AND FOOD PRICES? YEAH I LOVE
PAYING MORE SO OBAMA CAN PAYOFF HIS FRIENDS AND FAMILY AND BIG UNIONS FOR EXPENSIVE FAILED GREEN ENERGY!
The logic here is actually not bad if your an investor. But to keep the US dollar low is a costly move for non investors and the security of the USA. It's like we are selling ourselves out for the measly growth that will come from this to countries who hate us and would like to bury us. Bad move. If you notice monetary policy was a nonfactor in the campaign for President. Its like the whole monetary policy is scripted and it does not matter who is in the White House.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
After enjoying a smooth rise in stock prices since May, investors are about to be hit with another bout of volatility.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.