In order for the dollar to weaken, investors have to have more confidence that the European Union has quelled concerns over the sovereign debt of such places as Spain, Portugal, Italy, and Ireland.
If that happens, Stovall says this should benefit large-cap stocks that sell a lot of their products overseas and can benefit from a weaker dollar. In addition, he says S&P analysts are bullish on stocks in emerging markets. Many of those nations, particularly those in Asia, will see faster economic growth than the US, he points out.