Is a weakening dollar bad?

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Is a weakening dollar bad?

That depends on a lot of things.  Each company has their own exposure.

For  net importers, the cost of goods sold will rise.  But for net exporters, their product revenues will increase.

For international investors, the value of their holdings will rise and values of their dividend received will increase.

The changing value of the dollar is by no means a simple analysis.  The point is that it is very difficult to assess the effect of a weaker dollar on the overall economy.  The specific exposure of each organization is a function of how they conduct their business.

How do your holdings conduct their businesses.  You should know as it will directly effect your returns.

Copyright 2017 Mark T. McLaren