‘Exceptionally’ Weak Dollar Is the Earnings Boost S&P 500 Needs
- Greenback may end the year 13% lower, meaning a 6.5% EPS boost
- Dollar Index Spot has had its weakes start to a year since ’02
Kumar Says Weaker Dollar Won’t Save U.S. Equities
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The U.S. dollar, down 8 percent this year, will probably weaken further, according to Morgan Stanley. That’s primarily good news for American stock investors.
The greenback may finish 2017 down 13 percent, handing S&P 500 companies a 6.5 percent boost to their rolling 2018 per-share estimates, Morgan Stanley analysts including Michael Wilson said in a note Monday. Even if the dollar stays where it is now, they’ll get a 4 percent earnings bump.