Is the Strong US Dollar a Problem?
Broken Pie Chart
English - July 27, 2022 22:22 - 27 minutes - 25.4 MB - ★★★★★ - 16 ratingsInvesting Business Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
The US Dollar has been surging (getting stronger) as the Fed is raising rates more than some other countries or regions central bank. So why is a strong dollar problematic? How does a strong or weak US Dollar hurt or help US companies? Derek Moore is back to give some easy to understand examples plus how USD denominated debt from other countries will come under pressure with a stronger dollar.
Why a strong US Dollar can hurt companies
Why a weak US Dollar can help companies
US Dollar at parity with the Euro
How sales in foreign countries are affected by changes in the US Dollar
Does FactSet data on Q2 earnings disprove the strong dollar bad for earnings narrative?
US companies report earnings in US dollars no matter where their sales are from
What is the dollar index?
What is the trade weighted dollar index?
Exchange rates explained between two countries’ currencies
Examples of how changes in currency exchange rates impact sales and costs
Mentioned in this Episode:
Current makeup of Trade Weighted US Dollar Index The Fed - Foreign Exchange Rates - H.10 - Currency Weights (federalreserve.gov)
FactSet earnings and revenues comparison companies with less than 50% of revenue from outside US and companies with greater than 50% of revenues from outside the US https://t.co/ZS4eCCc1v6
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
Contact Derek [email protected]