Abby Cohen Says Dollar Drop Lures Foreign Stock Buyers to U.S.

(Bloomberg) -- The dollar’s steepest plunge since 1986 is making U.S. stocks cheaper for foreign investors, said Abby Joseph Cohen, the Goldman Sachs Group Inc. strategist known for her optimism during the 1990s bull market for equities. The Dollar Index, used to track the U.S. currency’s value against six others, has fallen 15 percent from an almost three- year high on March 5. The Standard & Poor’s 500 Index has risen 63 percent in the same period as government stimulus measures and record-low Federal Reserve interest rates helped end a four- quarter contraction in the world’s largest economy. Cohen said that while the steepest stocks rally since the Great Depression already reflects the potential for an economic recovery, the market will move higher in 2010. The weakening dollar is making American equity and the assets of U.S. companies more attractive to international buyers, she said.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aY93.HFpZyBk