As the U.S. dollar is trading 8.02% lower year-to-date, this expert believes that the dollar depreciation is fueling the “powerful tailwind for multinational earnings.”
What Happened: According to Jeremy Siegel, a senior economist at WisdomTree, the U.S. dollar’s significant decline this year is strongly boosting multinational companies’ earnings.
He underscores in his weekly commentary that about half of the S&P 500 revenue comes from overseas, which could offset the negative impact of tariffs on corporate profits.
“With 40-45% of S&P 500 revenues sourced abroad, that currency translation effect alone could cushion the impact of tariffs on corporate profits,” said Seigel.
“This, alongside hopes of deal-making and eventual tariff de-escalation, is underpinning the market’s recovery,” he …