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In this episode of Stocks in Translation, Peter Borish, Computer Trading Corporation Chairman and CEO, joins Markets and Data Editor Jared Blikre and Producer Sydnee Fried to discuss the dollar’s strength.
Blikre explains that a “strong dollar” refers to a “US dollar with high purchasing power appreciating against other currencies, which generally benefits imports but generally hurts exports.”
While many in the economic sector favor a strong dollar, it comes with drawbacks.
“Presidents like to say, ‘we want a strong dollar,’… but then when it gets too high, there’s a lot of pushback because a strong dollar means things are more expensive,” says Blikre.
The speed at which it gains value is more important than the dollar’s strength. However, Borish notes that the Trump administration’s tariff policy may shift the equation.
“If you’re [going to] put tariffs on… You depreciate your own home currency, then offsets, partially, the impact of tariffs because the dollar gets stronger. So there’s this tug of war,” he explains.
When it comes to diversification, Borish points to foreign markets as a potential opportunity:
“The overseas markets now are a place to potentially go, in terms of diversification.”
Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service.
This post was written by John Tejada.
