Shannon Melton

Where Have All the Value Investments Gone?

<<The earnings of the companies mentioned above, Microsoft and Cisco, are pre-dominantly from international sales. So, a weak dollar will benefit these companies, no?>>

Probably not. If the dollar breaks, other major currencies will go too. The yen seems strong, but its vulnerable right now. So is the euro.

Where Have All the Value Investments Gone?

<<The earnings of the companies mentioned above, Microsoft and Cisco, are pre-dominantly from international sales. So, a weak dollar will benefit these companies, no?>>

Probably not. If falls apart, so too will go the other major world currencies. Spreads on debt between European countries are at historic highs since the creation of the euro, sparking a lot of people to speculate as to whether it might be the first to crumble. The yen is also incredibly vulnerable, despite the fact that it is strengthening right now.