Goldman Sachs believes the U.S. dollar will catch up to the Euro and may even be equal by the end of the year.
This is just one outcome of a resurgent America in comparison to the European Monetary countries that are having all kinds of difficulty. While we ended our bond buying program, they’re just about to start.
This is good news for US travelers to Europe but bad news for big multi-national companies that do lots of business overseas as they convert back into US dollars.
Tensions with Russia, slowing global growth and falling consumer confidence mean the region’s biggest economy struggled to grow in the past 3 months, and may turn out to have shrunk for a 2nd quarter running.
Across the Eurozone as a whole, recently released data showed that economic sentiment dipped in September for a 4th month in a row.
Questions abound about whether this could lead into a vicious circle of falling prices and stagnation.
I’ll continue to watch this closely and make some macro recommendations for my clients as this continues to unfold.
This is particularly disturbing when you see teen and young professional unemployment in the 25% unemployed range.
The European economies have some real trouble now and in the future. What is interesting is that many of their stock markets are positive for the year.
This goes back to my statement in a previous newsletter that the stock market of a country does not necessary move in step with the economy.
How does this help us? It hopefully will slow the decline that is Europe, even if it’s not going to turn everything around long term until Europe gets the relationship between their debt relative to their GDP in order.
