It is all about the dollar, the greenback. If you haven't noticed, it has collapsed. It has not only collapsed big time over the last several years, but it has fallen a good 5 to 6% since earnings last quarter, when most companies gave their guidance for this quarter's earnings.
A lot of companies don't benefit from the falling dollar. Any retailer that does most of its business in the US isn't going to be a beneficiary for sure. Companies that build in the US from goods that need to be imported from abroad are probably going to get hurt (major car manufacturers) as are the foreign companies that depend on US sales to meet there numbers.
But, there is a defined group that should be knocking the cover off of the ball in this environment. Those US companies that have the majority of their sales outside the US should be able to return numbers that will instantly be 2 to 3% above their estimates from three months ago.
In an ordinary environment, Coke and MO make me sick. PG and UTX do nothing for me and I would avoid them because they are not cheap. I like the big pharm, but their is going to be a Hillary factor holding them back for the next year (maybe 5 years). So, I am not big on any of these stocks. But, are these the stocks that I want to hold through the next three weeks? You bet they are.
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