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Can someone explain why a stronger dollar causes the market to drop? I thought that was a good thing.
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Who said the stock market going down was a bad thing?
The stock market is just ONE market. It is not the only indicator of economic progress and quite frankly when gains are built on the backs of higher and higher multiples of earnings, they aren't gains that actually reflect a growing economy.
It'd be a good thing in my mind if interest rates went up and the S&P index corrected back to around 15 times earnings. My armchair quarterback opinion is that the Federal Reserve is behind the curve on raising rates this time just like last time.
The alternative is allowing another asset bubble to build right up until it busts again. Moving sideways for a year or two would be much preferable as it would yield fewer outright casualties in terms of people's lives being destroyed.
I only barely know what I'm talking about though so maybe someone smarter than me should chime in.