FA Center: Strong U.S. dollar can’t shoulder the blame for stock price swings

Stock investors have many things to worry about, but a strong U.S. dollar is not one of them.

That’s worth keeping in mind, since there is much hand-wringing on Wall Street about the impact on stocks from the dollar’s recent strength. But there is no historical support for such anxiety.

The next time you hear someone complain about the strong dollar, remind them of what happened in 2014. The U.S. Dollar Index DXY, +0.00% rallied more than 26% during that calendar year, while the S&P 500 SPX, +2.30% gained a dividend-adjusted 13.7% — and since then has produced an annualized gain of close to 10%.

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