Strange, for months they have talked about the strengthening dollar helping to lower oil prices.
U.S. Dollar Index (DXY)
Strange, for months they have talked about the strengthening dollar helping to lower oil prices.
U.S. Dollar Index (DXY)
If you were say the owner of a shop in Brussels or perhaps a denist in Osaka and have built up a sizeable chunk of assets, where would you reinvest the money to get it out of harms way?
The answer is America. It would be easy to sit at your computer and buy shares in an American mutual fund to send at least part of your hard earned assets out of harms way.
"They". Maybe "they" have it backwards. Fracking led to a boom in oil supplies, causing oil prices to drop. Many folks think of oil in terms of gasoline and diesel. However, thousands of products are made from oil. A few are plastics, fertilizers, animal feed, lubricants, makeups, asphalt for roads, roofing materials, paints, etc. A drop in oil prices drops the cost of ingredients in products, leading to a strengthening of profits and employment, and the drop in fuel prices eases transportation costs. The dollar is still losing value, as seen by rises in food and other costs. But that is temporarily offset by lowered oil prices for reasons I stated.