WSJ: Multinationals in U.S. May See Profit Fall

This is something I've been highlighting for quite a while, as the offset to the rejoicing of the "stronger dollar" - throughout the winter I was showing how multinationals were goosing earnings (revenue) not through organic growth but in large part just through a weak U.S. dollar. Now, we are only back to levels on the dollar seen in the spring and it's been a nearly decade bear market so it's all relative. But when your "14% growth" is "9% currency" and "5% reality" - it is going to look ugly for some of these companies once the tailwind goes away. The ability to "surprise" to the upside is going to be much more difficult in the coming quarters if the dollar stays where it is, or strengthens further.

Let me reiterate the dollar is still very weak historically so this is, so far, simply a correction (upward) in a long term downtrend. In theory doing massive ba...