Investors realizing a weak dollar is not good for US economy?

[brian0918]

Peter Schiff has repeatedly pointed out in his video blog that US stocks tended to go up on reports of a weakening dollar. He thought that was odd, considering what a weak dollar means in the long-term to the US economy. Now investors may be realizing it as well:

[This] may come as a surprise to some investors, since a sluggish greenback is often viewed as a plus for big companies because it inflates their foreign sales when translated back to dollars.

"What's curious is that investors take it that a weak dollar is always beneficial. But there has been damage from higher energy prices," said John Stoltzfus director and senior market strategist with Ticonderoga Securities, an institutional trading firm in New York "Sometimes, the weak dollar is problematic. Energy input costs could offset any sales gains."