5 Companies that will be negatively impacted by a strong USD
Recently I read a report about some of the serious problems related to a strong USD (represented by DXY). This includes multiple "sovereign debt crisis" (SDC) across multiple currencies whether it is the Yuan, russian ruble (and their default) and in this case the USD. More specifically, USD SDC will likely greatly impact the exports of US-based company as the relative prices of their goods will be increasing.
Naturally, some of the questions we should be asking are:
1. "which US company's rely export the most amount of goods?",
2. "out of the top 100, which company have the worst debt ratios?"
3. "out of the top 100, which companies are most like to survive this or face insolvency issues?"
With these questions in mind, I decided to start with a simple comparison between DXY and the 5 top US companies that rely on exports for their profits.
As you can see, immediately there is some correlation between DXY and the top 5 US exporters and it's a bearish correlation... So now its a matter of due diligence, financial reports, marketing the dates of FOMC minutes and meetings to take advantage of high volatility (represented with the $ symbol) and the inevitable rabbit hole comparing supply/relative cost goods from competitors and doing asymmetric risk/reward profiles based on the all this...
That kinda stuff unfortunately I'm not qualified or certified to discuss so DYOR and leave a comment if this made you think at all.
Naturally, some of the questions we should be asking are:
1. "which US company's rely export the most amount of goods?",
2. "out of the top 100, which company have the worst debt ratios?"
3. "out of the top 100, which companies are most like to survive this or face insolvency issues?"
With these questions in mind, I decided to start with a simple comparison between DXY and the 5 top US companies that rely on exports for their profits.
As you can see, immediately there is some correlation between DXY and the top 5 US exporters and it's a bearish correlation... So now its a matter of due diligence, financial reports, marketing the dates of FOMC minutes and meetings to take advantage of high volatility (represented with the $ symbol) and the inevitable rabbit hole comparing supply/relative cost goods from competitors and doing asymmetric risk/reward profiles based on the all this...
That kinda stuff unfortunately I'm not qualified or certified to discuss so DYOR and leave a comment if this made you think at all.