3/20/15 - The Good, The Bad, and the Volatility
After a volatile quarter, the markets are up slightly on the year. Many US Economic indicators are pointing to a slowdown in anticipated growth. Once again the weather is being blamed for much of this slowdown. However, we believe that the key element to this story is the incredible strength of the U.S. dollar. The dollar has and will continue to impact the top line revenue of many multinationals. The S&P earnings forecast for 2015 has already been lowered from 127 to 119 dollars . A strong dollar is good for many items like lower oil and gas prices, foreign investment and travel just to name a few, but it also has consequences for companies who export outside the U.S. While we still expect the U.S. markets to put in a positive year as the S&P breaches 2100 today, we continue to look for shorter term weakness to add to positions.