A falling dollar ought to be good for exports and bad for imports. So it may be time to invest in companies that face significant import competition.
I said essentially the same thing on another thread yesterday or the day before and was flamed mercilessly. Lots of "doom and gloom" goomers out there.....
This would be normal trade theory. Unfortunately, it is less than likely. We have huge trade imbalances partially because of the trade barriers imposed by China, the Pacific Rim, and the EU. They deny it of course.
But nonetheless real.
If things get really bad...they likely will make those barriers even higher. So as the dollar falls, in part because of their predations...they likely will react with even more aggressive barriers to keep the U.S. from redressing those imbalances.
Look at how the EU has reacted to being busted about its Airbus subsidies...they have threatened open trade war.
Why this should be so much worse than their thinly-veiled trade war is not explained.
Anyways...nothing is likely to happen at the WTO where the EU outvotes us 15 to one....
Yep. The WTO is to "Free Trade" what the UN is to "World Peace".
Time to get out of both.