With earnings season here, what's lost in the "oohing and aahing" over the incoming results is a reasoned look at what's influencing the dollar's move and, more importantly, the effect it will have on our wallets, if not today, certainly down the road.
Earnings and corporate reports are a long game, and that game is in the early innings. Investors need to understand the reasons behind the strength in the dollar, why it is likely to persist, and how we need to prepare...
Recently, some new neighbors moved in just down the street, and with new neighbors come changes.
The most apparent changes always happen outside of the house, and within a few months the house transformed as a pool, a patio, and even a sunroom became (welcome) additions. Indeed, so much changed that the neighbors around us started to talk.
You see, most people don't like change - but I welcome it.
Indeed, as traders, we actually need change in order to find a potential to profit.
Not all U.S. companies have been hurt by the dollar's year-long rally. Companies that share one key trait - let's call them strong-dollar stocks - are thriving.
Many multinational companies have seen the strong U.S. dollar eat into their earnings over the past few quarters. But we'll hear a different story from the strong-dollar stocks. This group of companies has little or no exposure to foreign markets.
And the factors feeding the strong dollar won't change any time soon.
Larry Fink says the strong dollar is bad for the U.S. economy. That's no surprise. But the Blackrock boss didn't mention, in his April 6 interview with the Financial Times, that the skyrocketing dollar could trip up the biggest tech companies - those that thought themselves smart for parking squillions overseas to avoid U.S. taxes.
The U.S. dollar is the strongest it's been in a decade.
It can be good and bad for U.S. stock markets - depending on the company.
Could a stock market crash occur in the wake of plummeting oil prices? If we continue to break certain low price barriers, it could.
All those new buyers loading up on oil, oil stocks, drillers, and explorers will dump their new bets like they were ticking bombs.
Since 2008 the U.S. dollar has risen against every important currency in the world.
Its steady ascent has been good for a lot of companies, economies, and investors.
Deflation in 2015 seems to be upon us. And while falling prices might seem like a good thing, deflation can wreak havoc on the economy.
In a deflationary period, prices will drop, corporate profits will dry up, wages will shrink, and all of this will reinforce the conditions of recessions.
While Russia fights for Eastern Ukraine, for now, it's losing the currency war.
Thanks to a perfect storm of low oil prices, economic sanctions put in place in response to the crises in Ukraine, and capital flight, Russia's been forced to capitulate by abandoning its currency peg.
It's all reminiscent of the financial attacks on Iran and its currency.
China's ambitions for superpower prominence are no secret.
But that requires recognition on the world stage.
Inevitably, that also means a greater role for China's currency, the yuan, in the global finance arena.
There are clear and visible signs that China's currency is on the march to that global position, yet until now they've been underreported.
The Fed plans to wind down its asset purchases this month, but Japan and the United Kingdom are still buying, full swing.
Meanwhile, the European Union is just looking to get started.
And, while the Fed is expected to begin raising rates next year, Europe and Japan recently pushed theirs below zero as deflation appears to be the bigger threat.
That's sent the U.S. dollar into a major run up, with the euro and yen on the losing side.
Multinational stocks have started to feel some negative ripple effects of the rising U.S. dollar index.
While a rising U.S. dollar index can have benefits, companies with a lot of global business face reduced sales and profits as their goods grow more expensive. For U.S. companies with substantial overseas sales, this means an extended period of pain.
The rising U.S. dollar has climbed to a four-year high - but will it continue?
Appearing on the CNBC program "Street Signs" this morning (Wednesday), Fitz-Gerald explained that wobbly economies in places like Japan and Europe will force central banks elsewhere to further weaken their currencies with U.S. Federal Reserve-style easing programs
In this video, Fitz-Gerald takes a detailed look at the rising U.S. dollar and what it means...
Hot money is flowing into the U.S., sending the dollar on a tear.
The British pound is getting slammed as we near Scotland's vote for independence, so the U.S. dollar is rising compared to this move.
While this U.S. dollar rise is short term, it's creating a major investment opportunity today...