keith vs doug on the dollar

The question as to wether the equity market prefers a strong dollar or a weak dollar cant be answered with charts and historical correlations. The answer to the question lies in the stages of the economic cycle that we are currently in. Three years ago the market expected a strong fed response to the recession. The weak dollar that resulted from an easy fed was welcomed, not solely as a boon to exports, but also as a prop to any asset denominated in dollars. After three years of  an inversely correlated stock/dollar relationship, the market now needs to see some results. At this point in the cycle, the u.s. must  graduate to a preferred destination point for global investors or else the market may lose confidence. So both keith and doug can be partially correct dependant on where we are in the economic cycle. My interpretation is closer to keiths and i think a strong dollar would reflect strength in the u.s. economy and should be welcomed by the market with 1 caveat. If the only reason for dollar strength is a deteriorating euro then it may not be interpreted as a good thing...the dollar must also do well vs other currencies at the same time..