Could it be that foreign investors are leaving the US market for higher returns elsewhere? Does the trade deficit have a bearing on the drop of the dollar in world currency markets? We were told for years that we didn't need manufacturing, that we were a service economy. If the dollar drops further, do we have the manufacturing base to rely on to produce our goods?
The emphasis is on the stock market, as it has been for the last twenty years, but the real bugaboo is the drop in the dollar. The dollar has always been a premium over local currencies in most of the world. If this has reversed, we are indeed in deep doo-doo.