Impact Of Dollar On Shares - Business Expert

General, a weaker local currency is good for economies that are driven by exports and maintain big trade surpluses. The US dollar has been showing strength in recent weeks. And considering the significant foreign exposure of most big US companies, are we to expect stocks to tumble? "Conventional wisdom holds that a stronger exchange rate is likely to be a headwind for stocks as US products become less competitive abroad," RBC Capital Markets' Jonathan Golub writes in a new note to clients. "Our research suggests this is not the case: (1) the economy and the dollar tend to move in tandem, which means that a stronger economy should result in dollar strength; (2) a rising dollar is supportive of higher multiples, as shown below." Higher multiples means that investors are willing to pay a higher premium for stocks during periods of dollar strength. Charles Schwab's Liz Ann Sonders has noted that there are also significant economic benefits to having a stronger dollar including lower import prices, lower commodity prices, and cheaper foreign travel for Americans. "In general, a stronger dollar is likely to be both an economic and market positive," Sonders said. RBC Capital Markets Follow Markets Chart Of The Day and never miss an update! Get updates in your Facebook news feed.

U.S. stocks decline most in eight weeks as Apple stumbles and tumbles – MacDailyNews - Welcome Home

stocks decline most in eight weeks as Apple stumbles andtumbles Thursday, September 25, 2014 2:26 pm 8 Comments U.S. stocks tumbled the most in eight weeks, as Apple Inc. sank on snafus related to its new smartphone and concern mounted that Russia may seize foreign assets, Joseph Ciolli and Oliver Renick report for Businessweek. Apple plunged 3.3 percent to send technology stocks in the Standard & Poors 500 Index to the biggest decline since April, Ciolli and Renick report. The S&P 500 fell 1.5 percent to 1,967.97 at 2:05 p.m. in New York, with all but 17 of the indexs components declining. The Dow Jones Industrial Average plunged 251.81 points, or 1.5 percent, to 16,958.25. The Nasdaq 100 Index slid 2 percent.

Some Stocks Don't Come Back - A Wealth of Common SenseA Wealth of Common Sense

ET SPECIAL: ET Special: All you want to know about Apple iPhone 6 SINGAPORE: Russia increased its gold holdings for a fifth straight month in August, while Kazakhstan raised its holdings by more than half a million ounces, data from the International Monetary Fund showed on Thursday. Russia, the fifth-largest bullion holder, added 232,510.206 ounces of gold in August to bring its total to 35.769 million ounces, according to data on the IMF's website. Kazakhstan boosted its gold holdings by 795,213.655 ounces last month to 5.848 million ounces. Turkey and Azerbaijan were among the other countries that added to their holdings. DON'T MISSany stories, follow us on Twitter Follow

Russia adds to gold holdings for 5th month in a row: IMF - The Economic Times

I remember a portfolio manager friend of minetold me he was buyingAmerican International Group (AIG) hand over fist when it hit a few bucks a share. All it has to do is come back half way to the prior peak and Ill be rich. You can see this strategy didnt work out thatwell: The same thing happened to a number of well-know financial stocks, includingBank of America (BAC): Citigroup (C): And Fannie Mae (FNMA): One of the most common behavioral biases when buying individual stocks is anchoring to previous levelsor the purchase price of a stock. The first thing investors do when researching a stock is pull up a historical chart of past prices. The fact that a company traded for a certain price in the past gives investors a false sense of hope that it will automatically go back to that previous price point. Sometimes this works, but trying to catch a falling knife can be a dangerous strategy if you dont know what yourre doing. My friend Michael Batnick shared some great statistics on individual stocks a couple of weeks ago that puts this into perspective from the standpoint of the overall market: Using a universe of Russell 3000 companies since 1980, roughly 40% of all stocks have suffered a permanent 70%+ decline from their peak value.