Maybe this paper economy is finally being exposed? Zombie companies that have zero revenues and sky high valuations on growth potential can finally come back to earth.

https://www.wsj.com/finance/investing/us-currency-stock-market-investor-impact-0f27a6fe? paywall free link- https://archive.ph/8jzt5

'How Investing Will Change if the Dollar No Longer Rules the World Should the U.S. currency and stocks no longer rise together, Americans will need to broaden their portfolios

What is striking is that a stronger dollar should, mechanically, hurt U.S. stocks—by reducing the dollar value of overseas earnings—and help foreign ones. Historically, it has been better to buy the S&P 500 when the dollar was weakening. Over the past five years, that held true: Fed rate hikes strengthened the dollar while hurting equities.

But in the seven years before Covid-19, the dollar and U.S. equities moved in sync. That was the heyday of the “American exceptionalism trade,” when U.S. assets outperformed across the board—not just in tech. This included currency-sensitive sectors like industrials.

Two forces helped drive this. One was the fracking boom, which made the U.S. largely energy self-sufficient, cutting corporate costs and turning the dollar into a kind of “petrocurrency.” Investors learned in 2014 the counterintuitive lesson that the U.S. economy may actually suffer when crude prices nosedive, and benefit when they rise.

Indeed, the other factor was that U.S. consumer spending was unrelenting, even at times when gas-pump prices increased. For years, it has been powered by government deficit spending, a tech sector exporting services globally at scale, and the wealth effects from a booming stock market.

Trump has pledged to plug the budget deficit, which could arguably weaken the dollar. Meanwhile, he has launched a tariff war that has tanked the equity market, triggered retaliation from China and may provoke European blowback against U.S. tech giants.

The new regime could echo the early 2000s, when investors turned against both tech and U.S. stocks in the aftermath of the dot-com bubble. At the time, the dollar also had a positive correlation with equities, as capital flowed into the so-called Brics—Brazil, Russia, India, China, and South Africa.'

Trumps tariffs deliver a 20-40% wall of inflation that will hit poorest US consumers hardest. They deliver massive distortion to markets and capital allocation. They incentivize non competitive US capital allocation and production of goods the US is simply not suited to produce. They punish countries who produce goods the US wants at a lower cost than the US can produce. They alienate traditional allies and make USA look like a failed state ruled by a sociopath gangster and despot who openly talks about engineering a third term as POTUS. Trumps tariffs acknowledge that USA has lost the trade war and demonstrate once again that Trump is a poor loser. They will deliver some short term relief to the chronic trade and fiscal deficits, buying time before the collapse of USD reserve currency status- although they could actually accelerate the rise of China by forcing all other countries into even deeper trade reliance upon China. Trumps tariffs are Voodoo economics from a convicted felon who is serving his own interests and those of his uber rich cronies. Trumps tariffs are Idiocracy 101 from a criminal and sociopath POTUS Trump.