I disagree... US Multinational improved sales abroad would be overwhelmed by domestic declines as the US enters its delayed recession (thanks to AlQaeda)
generally a tight link exists between USDollar and USStocks
the entire S&P is being, and will continue to be detrimentally affected by US$ decline
a chain reaction is to unfold
foreign participation in US stocks is still very high
as the US$ slips, it hurts USStocks as an outgoing tide, which hurts household wealth perceptions, which hurts consumer spending
now add in slightly higher US interest rates, and you get a backfire against corporates which massively swapped longterm for shorterm rates
so the higher rates coming soon will seriously hurt profits, which will hurt hiring, and probably lead to layoffs, which hurts consumer spending
I have never seen GreenMan GreenFlation in such a tough box
the only US stocks I see rising are commodity based
oil, gas, copper, other metals, gold, silver, timber, water
here is a nice zinger:
water resource stocks outperformed S&P, Dow, Naz in 2001 and continue to outperform them in 2002
screw technology, profits will be hard to find
/ jim |
