Federal Reserve. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes.
Your Money. Personal Finance. Your Practice. Popular Courses. Economics Macroeconomics. Key Takeaways A strong dollar is good for some and relatively bad for others. With the dollar strengthening over the past year, American consumers have benefited from cheaper imports and less expensive foreign travel.
At the same time, American companies that export or rely on global markets for the bulk of sales have been hurt. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Oil How Petrodollars Affect the U.
Weak currencies are symptoms of economic growth and deflation challenges that are not easily overcome, and any benefits from weaker currencies are unlikely to be sustained for very long. Consumer discretionary may be well positioned in our view. Commodities caution. We suggest waiting to add investments in the energy sector until the dollar rally shows signs of taking a pause, given its negative correlation with crude oil.
We are watching a number of other factors that suggest a patient approach to the energy sector is prudent, but the strong dollar may prevent oil from staging a sharp turnaround. We recommend investors own fewer bonds than their benchmarks and limit duration. But in an environment where several powerful forces are putting downward pressure on inflation—including the strong dollar and low commodity prices—we can take some comfort in our fixed income holdings.
Alternative opportunities. We believe the environment may be favorable for global macro alternative managers to potentially take advantage of currency volatility related to diverging central bank policies.
There has been no deflating the U. While the strong dollar does create some headwinds for U. Dollar strength is a byproduct of relatively good growth in the U. For you. World globe An icon of the world globe, indicating different international options. Get the Insider App.
Click here to learn more. A leading-edge research firm focused on digital transformation. Good Subscriber Account active since Shortcuts. Account icon An icon in the shape of a person's head and shoulders. It often indicates a user profile. Log out. Based in New York, Watts writes about stocks, bonds, currencies and commodities, including oil.
He also writes about global macro issues and trading strategies. Home Markets Market Extra. Market Extra Why the U. ET First Published: June 17, at p. ET By William Watts. William Watts.
0コメント