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from Ken Little If there was any doubt in your mind about the inter-relationship of major economies, it should be erased by now. Prices are rising (inflation) in China, while the European economy is showing signs of weakness. The result is a stronger dollar in Europe, but a weaker dollar against the yen. The bottom-line for investors is a single-minded focus on the U.S. economy and markets is missing the big picture. Most giant U.S. companies now generate more revenue (and profits in some cases) in overseas markets than domestically. It should be obvious that the world is shrinking and the investors who understand that will be best prepared to profit. | |
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