Dollar and Earnings Woes
It’s bad enough that the narrative that’s emerged this earnings season is this is as good as it gets, but now the surging U.S. dollar is putting additional pressure on blue chip multinational stocks.
The Dollar Index (DXY) crossed over its 200-day moving average for the first time since May 12, 2017, the 252-day stretch is one of the longest ever and first since 2011.
This isn’t great news, but it’s not earth-shattering. Yet, it’s another reason for bears to push their evolving narrative of woe. The irony is this woe is based on things humming along greatly.
According to Bespoke Research, with 1,000 companies reporting earnings this period, the numbers are truly impressive.
After the close, an assortment of names in a variety of industries posted financial results that largely saw beats on revenue and earnings greeted with knee-jerk selling.
As Good As It Gets?
The better the sectors earnings have been, the harsher the reaction of Wall Street.
Industrials have delivered the best results this earnings period against consensus, and yet, these names keep getting slammed, even as 79.5% have beaten on earnings. I believe it’s a major mistake for long-term investors to get sucked into this game of guessing, and emotional swings, especially with their industrial holdings.
Add a Comment!
Products & Services |
In The Media |
About Us |
All Rights Reserved.