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Hello Crazy Gang,
The American dollar ain't worth as much as it used to be. You can get about two dollars for every pound now.
In my youth you could mostly get three dollars to every pound - but that was a long time ago.
Why should UK shares be affected by a weak dollar? Well, a poor dollar makes a strong pound. And that means the Amercians will find it a lot easier to sell their stuff abroad, than the UK will.
Also, a lot of UK giants get quite a bit of their income in dollars. So they won't be earning as much.
What exactly is bringing down the dollar, then? Well, it could have something to do with the fact that a lot of folk have fallen out with their president. They don't think he's handling the problems in Iraq very well.
You might expect the pound to fall for the same reason. But it's reckoned that our economy can withstand a fall-out with our politicians. And they're probably right. UK companies keep coming out with strong profit figures - while not as many US firms are as successful.
Anyway there it is. There will come a time when the dollar hits bottom and makes a comeback. The Footsie will probably charge back then with some speed. So all is not lost. I will continue to sell poor shares - but I'll hang onto my better babies. But ain't that always the case? Rock on!
To find out more about Malcolm CLICK HERE
UKSA is the leading independent organisation for private shareholders in the United Kingdom. It campaigns to protect your rights as a shareholder and runs educational activities for members.
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