For several weeks in a row, analysts on both sides of the Atlantic have been talking about the impact of the weak dollar on the American economy. Many experts agree that US export-oriented companies dominate in the conditional list of beneficiaries.
This idea has received another confirmation after the recently released forecast from market strategists Goldman Sachs. The investment company believes that this year only non-residents will purchase shares of American enterprises worth $ 300 billion. And most of the funds will be invested in businesses with a high share of international sales.
List of fifteen
Citing Goldman Sachs, domestic and foreign media publish the TOP 15 companies whose shares will benefit from the dollar's fall. The list is dominated by semiconductor companies Lam Research, Texas Intruments, Broadcom, Maxim Integrated Products, Nvidia, Qualcom, Texas Intruments, Applied Materials, and KLA.
Analysts also recommend paying attention to the tobacco giant Philip Morris, video game maker Electronic Arts, media holding News Corp, equipment manufacturer Waters. The tourism industry in the TOP-15 is represented by Booking Holdings, the food industry - Mondelez Int., The financial sector - Aflac.
Goldman Sachs makes a bet on non-residents based on the analysis of its own data for a forty-year period. They indicate that it is the sinking of the dollar that has always stimulated the demand of foreign investors for shares of US companies.
Most Russian analysts agree that a weak dollar increases the competitiveness of American goods - not only in foreign markets but also domestically (due to the growth in the cost of imported analogs). This is a chance for the development of industry, which in the current economic conditions only plays into the hands of the Trump administration.
In this regard, some media outlets suggest that it is from the White House that the initiative to take measures to prevent the strengthening of the dollar comes. This can include pressure on the Fed over the level of key rates, and soft policy. Accordingly, experts predict that exporters can, to a certain extent, be confident before the November presidential elections in the United States: no drastic steps by the authorities to stimulate dollar growth should be expected.
Within the United States itself, increased attention to the stock market, among other things, may be due to the minimum yield on bonds. That is, stocks have become for many traders a partly uncontested financial instrument. Paul Krugman, winner of the 2008 Nobel Prize in Economics, also speaks of this. According to him, investors are currently maniacally afraid of lost profits. In an interview with CNBC, the scientist focused on the FOMO (fear of missing out) effect and warned against investing "on the verge of insanity."