the US peso
[a research note from Merrill Lynch chief investment strategist
Richard Bernstein]
US Peso
Because of the US dollar’s weakness, we have several times in the
past referred to the US dollar as the US peso. As one who is
currently traveling in Europe, this reference is currently truly
appropriate.
We encourage US-oriented investors to review Savita Subramanian’s
“Foreign Exposure” portfolio in her monthly Quantitative Profiles
report.
If the US’s standard of living is going to fall, and Washington is
not going to alter monetary and/or fiscal policy accordingly, then US
investors need to look for US companies that have exposure to
countries that have rising standards of living relative to US standards.
A simple Foreign Exposure screen is a pretty good starting point for
looking for such companies, in our view.