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Will the Dollar Benefit if Greece Leaves Eurozone?

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    Stifel Nicolaus market strategist Kevin Caron gives his outlook for the dollar.

  • Duration 3:17
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A -- of picking up on Nicole's theme of a stronger dollar today in the Euro getting pounded falling to levels not seen in two years so the question is.

Does the euro's fall mean Greece is out the door let's bring in Kevin Kerr on portfolio manager -- strategist at -- Nicholas.

Thank -- it's great to see is -- wanna get your take on you re utilizing.

You wrote extensively about it right but my concern about where the dollar is -- how it's.

Killing US stock market not killing but causing the sell -- right a very familiar trend.

-- -- the dollar going because of its role as flight to quality flight to safety.

Yeah -- I don't sit at -- -- I don't see that I don't see the dollar is killing the stock market -- -- says as much as the stock market has been.

Under some pressure recently because of elevated concerns about the potential for and unwind.

In the southern tier of Europe.

And what you've -- has been a fight -- flight of capital out of the southern tier to just bet anything that provides some safety so the dollar.

And US treasuries along with German funds were the natural recipient of those flows right and so what we're seeing is that.

Really more of a fear trade then and it's really more short term link to this particular issue in Europe and it's not so much that the -- causing the stock market.

No I appreciate that explanation but it's just said.

As signal right and an a concern because the European situation is yet to resolve itself is far from that we still don't know what Greece is gonna deal.

Wanna get your take on that but if we -- conceit continue to see a stronger dollar won't that continue to weigh on stocks and commodity -- bring commodity prices -- and and what's the impact of all of that.

What what's your your outlook.

I think there's a -- I think -- a couple things I'll start with your question that Greece I don't know that it's a foregone conclusion that Greece leaves.

-- only because when you really start to think about.

What happens to the people of priests in the event that they do -- it's a very disorderly situation there's a lot of pain it's inflicted on the Greek economy.

So I'm not -- that you immediately go to a -- -- withdrawal.

On and beyond that when you look at the global economy we are still seeing relatively slow growth and the data here in the United States.

Bears that out so whether it's auto sales or retails from me for work or consumer spending -- and so forth.

All all of all of that helps to.

All -- how that helps to provide for some modicum of growth around the world -- outlook is still fundamentally constructive but in the near term we have some issues as it relates to Europe.

Yeah absolutely think modicum of growth.

Kind of sums it up -- -- -- yesterday excited about 3% growth it hit.

In the US so so given that.

Where where do you see the stock market headed in and what's the best you have to play it safe you take risk right now got -- I think you can I think it has to be balanced though and our our our overall.

Viewpoint is that you are you ought to be focused on quality consistency in the equities you choose you -- -- have a balanced approach your portfolio all the things that.

Has proven that to be winning investment strategies in the past I think ultimately and looking further out beyond.

This immediate concern about Europe I think we do some some positive -- think when you look at the valuation on the equity market compared to bonds clearly attractive.

Companies are very -- -- they got very good balance -- so ultimately.

-- those kind of companies are what you wanna -- in your portfolio long term all right appreciate appreciate your insights Kevin Kerr.

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