A revenue winter
While trade wars are getting all the news lately, there are other developments investors should be paying attention to. The trade-weighted dollar has surged by nearly 10% this year, as the aforementioned trade war issues and concerns over global growth have led to safety-flows into USD-assets. In the past, similar instances have been problematic for equity market fundamentals. The strong dollar tends to weigh on the revenue growth of S&P 500 firms, who are either hit by weaker foreign sales or simply the currency conversion of foreign sales back into dollars. The next few earnings seasons should be interesting.
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