Finally, don't forget that 25 % of General Dynamics» sales come from overseas, which exposes a fair portion of its sales, earnings, and cash flow growth to
the risks of a strong dollar (resulting in foreign sales converting to less U.S. dollars).
Not exact matches
As we enter another year
of volatility and a
strong dollar, we explore a new way to hedge for currency
risk in your international investments.
Over the same period, the Canadian
dollar appreciated from a record low
of around 62 cents U.S. to above parity, helping to reduce the inflationary
risks that came with the
stronger growth and increased income.
Both
of these
risks increased appreciably in the first half
of the year, with the international economic data generally disappointing and the Australian
dollar on a
strong upward trend during that period, particularly during May.
Improved
risk sentiment failed to deter the yen on Thursday, as its rally against the
dollar deepened in the wake
of stronger than expected U.S. inflation...
The fact
of the matter is that the
dollar has been (and will likely continue to be)
strong for some time and, as such, you do need to consider currency
risk if you are investing overseas.
Arguably, by investing now when the
dollar is
strong I am also exposed to the
risk of the
dollar depreciating against the Euro, but a weaker
dollar would mean higher sales in
dollar terms, which would compensate in large measure for any loss
of value from a weaker currency: it's a case
of swings and roundabouts.
Dollar Gains as Investors Shy Away from Risky Assets The U.S.
Dollar posted a
strong gain versus major currencies on Thursday as investors pulled money out
of higher
risk assets and sought refuge in the safer Greenback.