UnitedHealth Group Inc. (NYSE: UNH) is due to report earnings this Tuesday morning and if you've looked at the stock lately you might say a quick prayer for them. The stock has fallen off a cliff and while some find that attractive, clearly investors are heading for other outperforming areas of the market. But is there anything good to see here?First, we'll take a look at the recent price movement. The stock is down over 10% this year and most of that has happened in little f...
You may have noticed that the US Dollar broke to new highs last week. No? OK, let's talk about it. After almost exactly one year of sideways consolidation at highs, the US Dollar broke to highs, continuing its bullish efforts. Looking further back, you'll see that the dollar has really been in a wide range since 2015, but this latest move pushes it almost to all-time highs.
So, why talk about the dollar and how does it affect you? Well, when the dollar is strong it benefits companies that get most of their revenues here in the States. Just think, strong dollar, strong domestic growth for companies selling mostly or exclusively domestically. If the dollar stays strong, then these are the companies investors will be running towards.
So, how can you find opportunities from this dollar run? First, you could look at an ETF for the lazy man's way to invest in a strong dollar. You would be looking at the Russell 2000 (NYSE: IWM) or, more specifically, the Russell 1000 (NYSE: IWB). The Russell 1000 ETF currently holds companies that on average get about 76% of their revenues from their US efforts. If the dollar continues to be strong, then you'd expect companies in this area to start reporting stronger revenues.
If you wanted to go on a stock picking spree then you could search for names that have much of their revenues (or even 100%) of their revenues here in the...
