U.S. Economy Well Poised

The U.S. economy looks better able to withstand the hit from a stronger dollar and weaker global growth than the stock market did last week.

Foreign sales last year accounted for 46.3 percent of revenues for companies in the Standard & Poor’s 500 Index in 2013, leaving them prone to a rising greenback and the recent slowdowns in Europe and Asia, according to S&P Dow Jones Indices in New York. By contrast, U.S. exports compose just 13.5 percent of the economy.

“The U.S. economy is less open than the S&P revenue base,” said Jan Hatzius, chief economist at Goldman Sachs Group Inc. in New York. “There are good reasons to think growth will continue to be above trend.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.