Economists Warn That The Strong Dollar Is The Biggest Threat To The U.S. Multinational And Energy Co

[Purveyor]

By David Findley on March 22, 2015 Business

Economists warn that the strong Dollar is the biggest ,drag on S&P earningsAccording to the economists the re surging Dollar is the biggest threat to the U.S. corporate earnings. It was also suggested that, the U.S. based multinationals will suffer the most and it was also suggested that, some of the companies in the Wall Street are even talking about an earning recession.

According to the market experts, the Dollar had a gain of 22 percent in the last 12 months against a basket of major currencies. It was also reported that, Revenue and earnings from foreign markets are worth less when transferred into Dollar. Market experts also said that, costs also become comparatively less against rivals, producing in countries with declining currencies.

According to the Bank of America/Merrill Lynch strategists the strong Dollar could generate an “earnings recession.” Market analysts said, it means that, there will be two successive quarter of declining earnings from the year earlier-quarter. According to Wall Street experts, historically 25 percent gain in the U.S. Dollar in a 12-month period suggest that, there will be a 10 percent decline in the markets earnings per share.

According to the market analysts approximately one-fifth of companies from S&P 500 issued warning on earnings for the first quarter. It was also reported that, 49 companies had reported the effect of Dollar on their earning in their reports.

In a statement CEO of Richard Bernstein Advisors in New York and Wall Street analysts Richard Bernstein said, “This is just the beginning. This impact of the Dollar on U.S. earnings could last for three to seven years. It may not happen every quarter but there’s a secular risk to U.S. earnings, primarily to multinationals, as the Dollar appreciates.”

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http://www.benchmarkreporter.com/economists-warn-that-the-strong-dollar-is-the-biggest-threat-to-the-u-s-multinational-and-energy-corporation/1699/

[tularetom]

1. I like how the letter "D" in Dollar is always upper case

Like it was "God" or something.

Who knows, to economists and market experts, it probably is equivalent.

[Erich Bloodaxe BSN]

2. Seems to me that when the dollar is strong

it's time to invest overseas profits in growing overseas, rather than bringing that money back into dollars to hand out to shareholders. And to buy resources in those countries with that currency, rather than, again, simply turning it back into dollars. Most multinationals don't have to 'lose' when the dollar is strong, as long as they properly manage what they actually DO with the money they earn in respect to the relative strength or weakness of a given currency such as the dollar. (I say 'most' because there are always specific industries that are more 'eggs in one basket' sort of deals, and those eggs might be tightly tied to the dollar.)

[irisblue]

3. So?

your concern is noted Bernstein.

[Downwinder]

4. Let the multinationals experience what the 99% has.

[Vincardog]

5. Who do these fucktards think will buy their shit now that we are all poor?

[On the Road]

6. Half-Smart Attention-Whoring Ignormauses

.

[ClarkeVII]

7. This is true BUT....

A strong dollar will help small domestic companies that do not operate oversees