Roger Biduk: Weakening Global Econonies May Hurt U.S. Companies

Roger Biduk writes:

With the global economies weakening, stocks of many U.S. companies may be in for a rough ride.

Economic forecasts for economies in Asia and Europe have been lowered and that downward shift in global economic growth is a negative for many North American companies for two reasons.

The first is that there are so many U.S. companies depending on foreign growth and revenue. The second is that with the strengthening of the US$ against foreign currencies, you get a double whammy.

Since the U.S. was the first to see a huge slowdown in their economy and other countries later following, it looks like the US$ is saying that the U.S. should be the first to rebound.

But it's anyone's guess. The dramatic drop in the price of oil may help, but there's lots of analysts out there who say that the markets may test their lows they saw in July before rebounding.

Roger Biduk can be reached by email at rogerbiduk@rogerbiduk.com and his website at www.rogerbiduk.com