Weak Dollar Blues

Have you heard that song yet?  It’s called “Killing the Blues” and it is from the most unlikely recent musical collaboration of Robert Plant of Led Zeppelin fame and Alison Krauss, a country music icon. I find myself driving down the street singing it, and believe me, not many people associated with the world of finance are driving down the street singing anything these days.

            Despite the recent hits the US dollar has taken in the past couple of weeks, indications are that the fall is not over. The dollar hit multi-year lows against various world currencies including the Swiss franc, the Japanese yen and particularly against the Euro. It even took a hit against the Malaysian ringgit. Yes. The Malaysian ringit.  Kind of like Duke getting beat by The Fashion Institute in the NCAA tournament.  To say I believe in silver linings in every cloud is not quite accurate. Essential to my ability to get out of bed every morning is my belief that there is always good to be found in any negative situation. And the biggest positive to come out of a weak dollar is the potential boon to American manufacturing. Paying Japanese or Malaysian workers with deflated dollars makes little sense when US workers get paid in US currency. I have not read about this anywhere, and I don’t know why except that bad news sells better than good news. Doomsayers always seem to attract more attention more than optimists, but believe me, there are people far smarter than me paying attention.

            As for me, I’m not offering any specific cure-alls. I’m just keeping my eyes open for investment opportunities with American companies manufacturing within the boundaries of the United States. Especially if they’re selling to foreign markets. It’s my version of killing the blues.