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The Myth Of What A Stronger Dollar Means For Stocks
When the value of the US dollar rises, US goods become more expensive in overseas markets. General, a weaker local currency is good for economies that are driven by exports and maintain big trade surpluses. The US dollar has been showing strength in recent weeks. And considering the significant foreign exposure of most big US companies, are we to expect stocks to tumble? "Conventional wisdom holds that a stronger exchange rate is likely to be a headwind for stocks as US products become less competitive abroad," RBC Capital Markets' Jonathan Golub writes in a new note to clients. "Our research suggests this is not the ... (full story)