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Sunday, 05/17/2015 12:16:52 PM

Sunday, May 17, 2015 12:16:52 PM

Post# of 376163

Weakening Dollar Boosts Large-cap Stocks

May 16, 2015 at 03:21 AM | written by Arthur Hill



The falling Dollar is boosting large-caps and they are outperforming small-caps. This makes sense because large-caps are typically multinational companies that derive a good portion of their revenue abroad. The Financial Times estimates that companies in the S&P 500 generate around 40% of their revenues abroad. These foreign earnings must be converted to Dollars and a strong Dollar translates into lower earnings. A weaker Dollar, on the other hand, helps the bottom line for companies that generate revenues abroad.

Chartists can see this relationship in action by comparing....


Click this link for the charts and the complete blog entry..

http://stockcharts.com/articles/chartwatchers/2015/05/weakening-dollar-boosts-large-cap-stocks.html

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