Financial Times/Kate Duguid and Nicholas Megaw/6-13-2022
“Foreign exchange effects, largely attributable to the dollar, are expected to have knocked roughly $40bn off the earnings of North American companies in the first half of this year, according to financial technology firm Kyriba. That is compared to roughly $8bn in the first half last year.”
USAGOLD note: This is how inflation makes its way to the stock market. Though effective in delivering its theme, this article focuses on relatively healthy companies. When you blend zombie enterprises into the mix, it adds the problem of systemic and counterparty risks. We have a Fed that is determined to raise rates as the economy sails into the stormy waters of a slowdown. Treasure may be lost, and that, in a nutshell, is what the markets have been reacting to over the past several trading sessions.
