Even though the dollar has surged and the U.S. economy is outperforming the rest of the world, investors need to be concerned, says Societe Generale head of U.S. macro strategy Lawrence McDonald.
"The dollar is creating tremendous systematic risk," McDonald said Tuesday on CNBC's "Futures Now."
One issue is created from crude oil, given that crude oil prices are inversely related to U.S. dollars, since as the value of the dollar increases, it takes fewer of those dollar to buy a barrel of oil.
"As the dollar goes higher, it drives oil lower. Russia is now junk [in its credit rating], but it's not just Russia. If you look at the corporate debt market, and the number of companies that are tied to Russia's fate, you just have a situation where there's tremendous systemic risk that's tied to oil."
On Wednesday, crude oil closed at a fresh six-year low, which appeared to weigh heavily on equities.