The US currency is strengthening in conjunction with the a strengthening US economy (proxied here by employment growth and surveys of businesses on hiring intentions and growth prospects). The last time we had this environment was in the 90’s.
The combination of increased spending power accompanied by job growth could result in an empowered US consumer. We have seen personal consumption on the rise. With a fist full of valuable dollars and lower gasoline expenses the US consumer is in position to shop the global market place for goods. We see non-oil imports on the rise. Might we also get US companies spending as well?
Given the above narrative, we could see not only better global economics, but a change in relative equity market outperformance from US stocks to the international flavor.
As always, please feel free to contact me with any questions or concerns.
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For information on Alhambra Investment Partners’ money management services and global portfolio approach, Douglas R. Terry, CFA is reachable at: dterry@4kb.d43.myftpupload.com
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product.
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