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.
Stocks to buy when dollar is up
- The Dollar's Move Is More Dangerous than You Think
- How to Buy a 100% Gain on the Dollar… for Just $0.50
- Strong-Dollar Stocks to Buy While the Greenback Is King
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.