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Weak Dollar

photo by ppdigital

Weak Dollar? Not if you’re a tourist from overseas. The weak dollar has tourist spending more money than ever before. There are less visitors coming here than last year, but their spending has increased year over year by about 20%. That may help us but it’s not what this country really needs.
What we need is a strong dollar. Today the dollar gain some strength today as oil dropped for the second day in a row. Gold slid back 2% as well, on the news from the Federal Reserve of talks on possible currency intervention. They may even increase the interest rates to help the dollar.
The markets rallied today. The Dow finished at 11,239.28, climbing over 276 points. We will have to wait and see where it goes tomorrow and going into the weekend. Today’s news helped, but possibly not enough to sustain the rally. I guess we’ll see.
Today’s performance was mainly based on the financial sector, namely Wells Fargo with a great earnings report. Some of the other banks increased by 10% or better today.
BAC +22% , ZION +22%, JPM +15%, WFC +32%
When banks are happy, the dollar is too.
The big winners were Fannie Mae and Freddie Mac,. Both being up over 30% today. To think that one could possibly think of them as penny stocks(price being under $10 per share). One should have seen this coming being that Ben Bernanke stated that the Feds commitment to bring stability to the financial markets is a serious one.
Any one who may have seen the writing on the wall bought into some financial stocks in the last two days. I was underweight in the sector and since the news released on Monday has picked up some shares. I am more than happy with the gains & will be getting out very soon. As for the dollar, I do believe it will strengthen but not in the near future.
P.S. Want to learn more about the stock market? take a free two week trail with Jim Cramer from TheStreet.com

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