Can’t win for losing….
Last evening I was doing currency exchange 101 with a daughter who is going aboard to the “homeland” to study in a matter of a week. We were having a crash course on Euro to Dollar quick conversion ratios. In getting some quick data about current FX rates, I found out that Tuesday’s down market was triggered by poor consumer confidence ratings….and a strong dollar!
So, good news for the youngster…she might benefit from a stronger dollar, hence those pub purchases won’t dent the purse as much and maybe there might be some souvenir money. Bad news for the economy…the dollar is up.
So what’s the beef? Shouldn’t we be jumping with joy that our dollar is increasing, showing the world we are a power to be reckoned with again? The world order is restored.
But ironically our market is down a hundred points for the Dow when America is King of the World with Gold, Silver and Bronze. But, other commodities of steel and cooper today decided to take 4th and 5th place in the race and not place for a medal…or is that metal? It just doesn’t make sense.
About a year ago, cries were heard from near and far about the weakness of the dollar. The headlines all read ‘strengthen the dollar; strength the economy’. Now we have an improving dollar and the market is crying. We can’t have it both ways! While every politician will never admit in public, they all secretly want a lower dollar as it helps tremendously with exports, improving the trade imbalances, and creates jobs domestically through as a result of higher production levels. However the flip side is a stronger dollar improves profit margins as a result of cheaper raw goods acquired globally and hence earnings improve for American companies. So, the question begs…what do you want?
I’ll tell you what I want – not much…relatively speaking. How about a few dollars in my pocket (weak or strong, I’m not picky), a decent stock market to grow a retirement, quality yet affordable health coverage (no endorsement of any plans here, just wishes), good health (so I don’t have to worry about the aforementioned), peace of mind that my children don’t face hardships, good friendships. I’m sure there are a few other things but how different am I than my neighbor…anywhere in America?
We find ourselves, virtually a year later from the abyss, a bit more conservative financially and still wondering which way this “recovery” is headed. We reflect upon the year and ponder our moves. Did we get the right advice, making timely portfolio adjustments to prevent loss while enhancing gain at the appropriate times? Did we, or do we, trust the advise (if any) from our advisors? Maybe it’s time to use those dollars….and make some decisions.
For those who are faithful readers, I’m sure you know by now, but I write this column for you. With all the noise out there in the financial reporting world, I strive to make this weekly report a realistic dose of common sense, giving you current market information in hopefully an easier digestible method. Call it the acid reliever of financial journals which are filled with insider jargon. In any regard, I do enjoy the therapeutic relief it extends to me…regardless of the fact no dollars are earned…hence…I frankly don’t care whether they are strong or weak for now (except I do expect a nice Guinness souvenir, therefore I better say I want a strong dollar for now!).
Have a great week. Comment freely. Connected to you for you. Greg
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