As the dollar strengthens the prices of commodities, oil and other materials are heading downward. According to Harry Rady of Rady Asset Management, the recent surge in stocks has been too fast compared to the poor state of the economy.
“The market just seems to keep driving the car into the wall and then wonders why it can’t keep driving,” Rady said.
After deep drops in prices of stocks in Europe and Asia in response to the strengthening dollar, prices of commodities and other materials declined.
An additional blow came when the index of manufacturing in New York showed that demand was also faltered in the months of May and June.