but alex, the dollar has risen, not decreased, in value over tha last year.
again, the market bears beat the stocks down, and down again. why have the values reversed the downslide and showed gains? easy, the cos are healthier.
the inventory levels have declined and manufacturing levels have improved. margins are much better due to the lack of the need to discount prices to move goods. the rest of the world economy has also improved, esp in china where their stimulus programs have increased demand for items such as cat earth moving equipment.
long and short, we are experiencing a modest economic recovery, the business outlook has improved, the consumer sentiment has improved dramatically, construction activity appears to have bottomed out and is now on the upswing....all these have given positive reinforcement to the bulls.
the fed can give billions and billions of dollars to citi...and unless the investment community believes that citigroup has turned the corner and has the prospect to actually make a buck running its business, their stock price would still decline in spite of these billions and billions of dollars being funneled into citi.
stock prices are based on the future earnings of a business. apparently the market believes that these cos (inc citi) will have better earnings going forward. they have a much more positive view than you do.
and again, apparently the government's policies are bearing fruit.
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