Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
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June 10-16, 2015 UCW 11 WWW.UPANDCOMINGWEEKLY.COM Currently, the U.S. dollar is pumped-up and powerful. But what does a strong dollar mean to you, as an investor? To begin with, it's important to understand just what is meant by a "strong" dollar. The U.S. dollar does not exist in a vacuum — its value, from a global perspective, is determined by its changing strength relative to that of other currencies. Let's look at an example: Suppose that, in 2011, you traveled to Europe and wanted to trade in one dollar for its equivalent value in euros. At that time, your dollar would have converted to about .75 of a euro. Fast forward to early 2015; if you returned to Europe now, your dollar would fetch you almost one full euro. In other words, you can buy more euros because the dollar is "stronger." In fact, earlier this year, the euro hit a 12-year low versus the dollar. And it isn't just the euro; the dollar is strong against almost every other major currency in the world. What has led to this strength? It's not always easy to determine what's behind foreign exchange rates — which can fluctuate even more than the stock market — but the recent surge in the dollar seems to be due, at least in part, to its obvious connection to the American economy, which has been growing faster than many other economies around the world. The stronger dollar is also due to expectations that interest rates will remain higher in the U.S. than in many other countries. But whatever the reasons for it, the dollar's strength may be having an impact on your investments. A strengthening dollar typically lowers returns from international investments because you get fewer dollars in exchange for the value in euros or other foreign currencies. And some U.S. companies with a global presence may face challenges due to lower earnings from their international operations. These results might lead you to think that a strong dollar would be bad news for the stock market, but that hasn't been the case in the past. At different times, the markets have performed well with both a strong and a weak dollar. In contrast to its impact on U.S. companies, a strong dollar can help foreign companies compete and may give them an earnings boost from their U.S. sales. Also, the stronger dollar can help make foreign investments "cheaper." Even more importantly, by taking advantage of the stronger dollar and investing an appropriate amount internationally, gaining exposure to different economies and markets, you can help diversify your holdings, which is important. Although diversification can't guarantee a profit or always protect against loss, it can help reduce the impact of volatility on your portfolio. Be aware, though, that international investing carries special risks beyond currency fluctuations, including political and economic instability. The strong dollar may have attracted your attention, but don't be distracted by it — and don't overreact. Currency exchange rates can fluctuate rapidly, and no one can predict how long a strong dollar environment will last. By sticking with a solid, long-term investment strategy, you can help keep up the "strength" of your own dollars. Should You Make Investment Moves Based on a Strong Dollar by STEVE McDAVID STEVE MCDAVID. Contributing Writer. COMMENTS? Editor@upandcomingweekly. com. 910.484.6200. Accredited by the North Carolina Local Health Department Accreditation Board If you would like more information about the Cumberland County Department of Public Health's programs and services, health-related data, or community resources, please call 910-433-3600 or visit with someone at the information desk or visit our website at co.cumberland.nc.us/health.aspx#. Comments are welcome and can be submitted on our website at co.cumberland.nc.us/health/comment_form.aspx. The Health Department is located at 1235 Ramsey St. in Fayetteville. Buck Wilson, Public Health Director. 1235 Ramsey Street, Fayetteville co.cumberland.nc.us/health Cumberland County Department of Public Health Get your child's physical early! Primary care Physical examinations (includes developmental screening) Dental varnishing Hearing screening Vision screening Laboratory screening Preventive education Nutritional counseling For an appointment call Child Health Clinic at (910) 433-3600, ext.1 Child Health Clinic services Physicals Kindergarten General Admission Adults $7.00 - Children $6.00 Military & Senior Discounts Available first pitch at 7:05 pm Gates open at 6:00 pm 6/11 Wilmington Sharks First Responders Night Presented by Cape Fear Valley Health System 6/13 Holly Springs Salamanders FIREWORKS NIGHT! Military Appreciation Night / US ARMY 240th Birthday Celebration Presented by Rick Hendrick Toyota and USAA 6/16 Catawba Valley Stars Fayetteville Chamber Night