Morgan Stanley Bets on Weaker Dollar Fueling U.S. Stock Rally—Because Fundamentals Are So 2023
Wall Street’s latest narrative drop: a sliding greenback might just be the rocket fuel for domestic equities. Morgan Stanley’s strategists—fresh off revising their dollar outlook—see currency weakness as the unexpected tailwind for U.S. stocks.
Why it matters: When the dollar stumbles, multinationals win. Exporters get competitive pricing power overseas, while foreign earnings get a conversion-rate boost. Never mind that most corporations still can’t articulate their AI strategies—FX fluctuations are the new EPS driver.
The cynical take: Another day, another macro factor propping up valuations while management teams collect bonuses for riding macroeconomic waves they didn’t create. But hey—if it keeps the bull market alive, who’s complaining?
