User 143167

Global Investing: Get Past the Noise

Stocks like WMT, IBM and Intel have more cash flow from overseas, actually 50% of the earnings in S&P500 are from oversea sellings. With cash flow in a basket of currencies and the stock denominated in the $, a strengthening US$ will be negative to the value of US stocks. Every analysts who use DDM or DCF to value stocks know this.

Bonds: No Inflation Threat in Sight

The conclusion is wrong. The bond yield is low because huge foreign demand of T bonds. It is not reflecting the inflation anticipation, but the willingness of foreigners to keep US(their biggest customer) solvent.