Second Way Europe Affects the United States

McDonald’s second-quarter profit falls, shares slide | Reuters.

The second problem for American multinational companies is that the drop of the Euro means less dollars when profits are converted back. While analysts are starting to get on board with the first problem, they are behind in adjusting for the second. This can be seen in very rosy 3rd and 4th quarter estimates.

In my experience, once a situation starts deteriorating, it deteriorates until it hits the bottom periods of rising or stability be damned.


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