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Motley Fool Hidden Gems Investing

What “Currency Headwinds” Mean for Investors

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 22 October 2022

⏱️ 25 minutes

🧾️ Download transcript

Summary

Expect to hear “currency headwinds” a lot this earnings season. But a strong U.S. dollar isn’t all bad and can make international companies cheaper. Ricky Mulvey caught up with Bill Mann to look at four economies around the world, including: - England’s pension and interest rate problems - The challenges of investing in China -  A massive raw material exporter with a currency that outperformed the US dollar (NOTE: This episode was recorded before Liz Truss resigned as Britain's Prime Minister Companies mentioned: CNSWF, NXGPY Host: Ricky Mulvey Guest: Bill Mann Engineers: Rick Engdahl, Dan Boyd   Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Brazil is one of the few countries whose currency has outperformed the US dollar in calendar

0:07.7

2022.

0:09.2

Certainly the largest convertible currency to have done so the real is done quite well and

0:15.7

it really has to do with the fact that Brazil is selling stuff that people need.

0:29.8

I'm Chris Hill and that's Bill Mann, senior analyst and lead advisor for the monthly

0:34.4

fool's global partner service.

0:37.3

I hope your passport is up to date because today we're hitting four different economies

0:41.5

outside of the US.

0:43.6

Ricky Mulvey caught up with Bill to talk about the challenges of investing in China, countries

0:48.9

with some opportunities for investors, and what's going on with Britain's pension crisis

0:54.4

and if it's a big deal for the rest of the world.

0:57.8

Some quick note, Ricky and Bill recorded this conversation before Liz Truss resigned

1:03.8

as Britain's prime minister.

1:11.0

There's a strong dollar and that's going to be a big theme.

1:13.9

I feel like that's going to be the big theme of this earning season.

1:17.4

Macro currency headwinds if you will.

1:20.0

Yeah, it feels awesome to us in America, doesn't it?

1:23.6

It should.

1:24.6

It's fun if you're trying to plan maybe a trip to Europe or abroad, but when you hear

1:30.6

that this theme of currency headwinds, how seriously are you taking that from the companies

1:35.8

you follow and is it something that investors should really be concerned about?

1:40.2

Yes and no.

...

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