Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Dan3 who wrote (104915)	11/26/2009 5:45:44 PM
From: John Metcalf	Read Replies (1) of 116555

"Won't a falling dollar tend to increase dollar denominated stock prices?" A company with primary earnings in USD will own a less valuable future cash flow, and the value of its assets will lessen. GM, for example, owns much of Lansing, MI, and equipment tooled to make cars that are not selling, and discounted loans made by GMAC. Add in expectations for higher interest costs and increased taxes and adverse regulatory climate -- not a pretty picture. US-based companies with strong foreign earnings have been faring better.

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