The strength of the U.S. dollar allowed Americans to consume foreign goods and travel to exotic lands. Now the dollar is at year-plus lows. If it stays this way, it could change our economy and which exchange traded funds (ETFs) we choose.
There could be some big motivation for keeping the dollar weak.
A large portion of American companies do big business overseas, so profits will in large part come from the strength of foreign currency as the U.S. dollar withers. All of a sudden, these multi-national corporations are looking at emerging markets as a source of income instead of places where cheap labor can be had, explains Gary Gordon for ETF Expert.
Gordon poses the question: Are we purposely growing America by letting the U.S. dollar slip? (How to play a weak dollar).