Dollar Up! Markets Down? Why?

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Investments: Episode 31

Why did the markets go down Tuesday because the dollar gained value? And then on Wednesday the markets rebound in part because the dollar fell in value. That doesn't feel right?

Let's dig in and understand why this happened: 

• It helps to remember that markets are truly global even if we are talking about the S&P 500 or Dow 30. Companies buy and sell globally and they also source capital globally. A change in the exchange rate can materially impact a company's profitability.
• There are a lot of people who are short the dollar. If there are a lot of investors, and companies, betting against the dollar's value then any move to the upside has a negative impact on their results.
• If you have money coming from international markets its value is materially impacted when you bring it home.  A stronger dollar means your profit is reduced upon repatriation.
• Also, if your stock price is denominated in dollars and dollars are suddenly worth more, this means it takes fewer dollars to buy your stock. The opposite is also true.

Who is the new Columbus?

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Investments: Episode 25

My friend Deborah Cole Micek (aka @CoachDeb on Twitter) mentioned on Facebook that she "Didn't even realize it was a holiday. ((side effects of entrepreneurship))" To which I replied "C'mon! This is like the ultimate entrepreneurial holiday. Put it all on the line to discover a better trade route."

Columbus was indeed an entrepreneur who was willing to put it all on the line for his dream of discovering a faster trade route for spices and silk. He also wanted fame, glory and riches. And of course the native people of Hispaniola paid a high price for his success. But, succeed he did and the world was changed forever with his success.

This got me thinking, who are the new adventurers? Who is out there putting it all on the line to change our world? Is Elon Musk of Tesla Motors a Columbus-like pioneer? What about WePower, who acquired PacWind, maker of vertical wind turbines and solar panels for commercial and residential use? Should we awe at the pursuit of rare Earth elements or oil and natural gas exploration?

What do you think? Are there any great explorers left?