The Wall Street Journal printed a piece this morning recapping how the S&P 500 rose 14% in the first three months of the year with the second quarter earnings on pace to climb roughly 9%. In the precious metals industry typically the declining dollar means bullish for GOLD. In this morning’s piece various corporations comment on what the weak dollar is going for them. Interesting article.
“The declining dollar is also helping to drive earnings higher. U.S. exports become cheaper to foreign buyers when the dollar’s value fails.”
Global Sales, Weak Dollar Lift U.S. Corporate Profits — WSJ
Some interesting quotes from the article:
Some observers say the dollar is poised to fall further, particularly if Mr. Trump, facing resistance to his economic agenda, attempts to use the currency as a tool to help the economy expand faster. He could do so by, “jawboning the dollar further down and instituting policies that are more dollar depreciative in nature,” said Adrian Helfert, Head of global fixed income at Amundi Smith Breeden (quoted for WSJ 7/28/17 A2)
Mr Trump praised Fed Chairwoman Janet Yellen for keeping the dollar “not too strong” in an interview with the Wall Street Journal on Tuesday.
We are happy to say GOLD is up this morning and it looks like it will continue the trend.
Get your gold scrap in and ready to take advantage.