Gary, (partly off topic)
My foreign portfolio is down a bit (<2%), although I dumped Bangkok Bank at a 30% loss. I normally ride out turbulence, but I don't think Thailand is going to be a good investment for at least a year. My portfolio is well-diversified, so I don't plan on making any other changes.
(back on topic)
Regarding the exchange rate's and Intel, a strong dollar will affect Intel's sales somewhat. IMHO, I don't think Intel will have as much trouble as most companies. Consider General Motors, as an example. If GM products are too expensive, you can always buy Japanese. Intel, on the other hand, makes a unique product, the x86 chips, which are in very high demand. Intel's competitors are also American, so the exchange rate is moot. Even more important, Intel has a strong brand, for which most people are willing to pay extra (the "Intel Inside" campaign worked!).
Even if you don't agree with my analysis, you have to agree that currency fluctuations are finite. In one or two years, this problem will have worked itself out, and American goods will be fairly priced again. In the meantime, Intel still has at least 80% of the North American market, and will continue to be very profitable. I estimate that the strong dollar will clip 1-2% off Intel's profit margin. That's a lot of money to be sure, but it doesn't matter if you look at it with a long-term perspective.
Well, that's my two cents.
Chuck Martin |
