We talked about the Euro last week, and Wall Street is finally waking up that “It’s a Small World” after all. The deteriorating world economy is taking hit on our good old American earnings that are being reported from the 4th quarter. With a rise in the dollar American goods are more expensive and companies that conduct worldwide business are feeling the pinch.
Domestic companies without global exposure will be the Wall Street darlings for a while as the markets digests how our strong dollar will affect earnings. CAT got slammed with a 25% miss in Q4 profits, and they tend to foreshadow global strength and weakness with their earnings tied to the global economy.
So continue to enjoy low oil and smile as the American economy is back on top. Sometimes all it takes to be a winner is not to be the loser. So show some American pride and know that our domestic companies with little worldwide exposure are going to enjoy some much needed prosperity.