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Originally Posted by mlfun  Here ya go again engaging in fear mongering and reading the tea leaves. Suffice to say, no one knows where the "Dow" will be in the future. The "Dow" does not exist except as a mathematical formula conjured by some financial "wizards".
How does a weaker dollar and higher govt debt make a strong company crumble ? That is the right question. Take Johnson and Johnson as a candidate. No bonus points.
P.S. Just note that JNJ barely budged today. |
Oh, and your JNJ question, the weaker dollar changes the expense ratios on foreign subsidiaries, changes the currency hedging balance and, depending on the division impacts the sales due to inflationary effects of a weak dollar.
Higher Government debt simply starts the cascade a bit higher up the flowchart.
Note that much of the growth of JNJ this year was international. Nearly 50% of ALL worldwide revenue was International and US revenue was propped up by Pharmaceuticals which currently have carte blanc to charge "whatever the market will bear". So much of our high insurance premiums and some government Medicare/Medicaid monies went to prop up JNJs bottom line in the US.
I am not sure than answers your question as it was somewhat cryptic. Plus the lack of challenge since there were no bonus points available.
http://files.shareholder.com/downloa...3CE/2007AR.pdf
