Skip to content
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

STRONG DOLLAR: THE UPS AND DOWNS

With China’s virus outbreak slowing the country’s growth and dampening world trade, investors have been holding tight to U.S.-based assets.
The result: the dollar has reached its highest point since October in the Wall Street Journal’s WSJ Dollar Index.
The strong dollar makes U.S. goods and commodities denominated in dollars more expensive outside of the U.S. As American goods become more expensive, exports can fall and corporate earnings and profits fall with them.
Emerging nations also will find it harder to make loan payments denominated in U.S. dollars.
S&P companies’ fourth-quarter profits are trending flat compared to 2018’s numbers. A strong dollar in a weak global economy could flatten 2020 profits as well.
Flat profits would be a factor keeping stock prices from rising.
Some analysts have predicted that S&P 500 companies’ profits could grow by 10 percent or more during the last half of this year, but many investors see the forecast based more on hope than data.
With global growth slowing and many national economies teetering on the brink of recession, a strong dollar could push some over the edge.
Donald Trump has decried the dollar’s strength, noting that it places U.S. businesses at a global disadvantage and is using it as a reason to pressure the Federal Reserve to lower interest rates even further.
TREND FORECAST: As the dollar gets stronger and U.S. exports shrink, the Fed will be increasingly likely to succumb to pressures for even lower interest rates to shore up the economy. By November, the Fed will announce zero or negative interest rates in response to the global economic slowdown.