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Push Back: Costs of a Rising Dollar
Numerous companies have reported that developments in the currency markets, especially the dollar's appreciation, has been an important headwind on their earnings. The logic is compelling. US S&P 500 earn almost 50% of their revenue from foreign markets. Given the greenback's appreciation, those foreign earnings translate into less dollar earnings. However, this is all too often where the analysis stops. Although analysts and journalists are rightfully skeptical about government claims, they seem to be much more willing to take the corporate claims at face value. Many observers do not appreciate the US expansion ... (full story)