00:00Non-domestic sales for companies in the S&P 500 represent 35 to 40% of their revenues.
00:08So the way to think about it is if you're a company in the US,
00:11but you're selling stuff in another country in that country's currency,
00:15when you go to convert back to dollars, you're going to get less dollars for all the stuff you
00:20sold, which means you just made less money. Now, the cruel irony is that a strong dollar
00:25is actually helping keep inflation down. That's because imports are cheaper for us. But the
00:31irony is that as investors, we actually want a weaker dollar so that when they convert those
00:36currencies, they make more dollars and they make more money.
Comments