The dollar has scored a lot this year, with the Bloomberg Dollar Spot Index increasing 4.5 percent. This is a significant percentage for the greenback, which is generally far less effective than stocks.
Investors are pleased with the dollar''s robust economic growth and rising interest rates. Russia''s war on Ukraine has also boosted the currency, as investors consider it as a safe place in the face of global turmoil.
If you are a stock investor, you may want to avoid stock markets that suffer from a spiked dollar. Bank of America has created a list of the S&P 500 stocks most affected by a rise in inflation over the past ten years.
The following are the indicators of a negative understanding of the dollar strength, starting with the most negative.
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For a list of the stocks that benefit most from a rising dollar, see this page.
Morningstar Take on Tesla
Seth Goldstein, an analyst at Morningstar, has assigned Tesla a small moat and gives the stock a $750 fair valuation.
Given that Tesla does not spend money to advertise its services, we believe the market has enchired the company''s reputation with [Chief Executive] Elon Musk, according to Goldstein.
Despite the fact that Tesla''s market-leading electric vehicle and autonomous driving technologies are a major driver.
Goldstein said that as the company continues to develop new automobiles and improve its autonomous driving capabilities, we see the company''s robust brand remaining intact.
Tesla''s greater near-term threat is the company''s ability to successfully roll out and begin mass production of its Cybertruck next year, according to Goldstein. Class A Reportand General Motors (GM)
Morningstar Take on Wynn
Dan Wasiolek, an analyst at Morningstar, assigns Wynn a solitary moat and gives the stock a fair value at $105. The stock has recently traded at $65.
According to Wasiolek, the stock is concerned about how inflation and China''s Covid policy might affect future demand, putting the company''s capacity to pay its debt to jeopardy.
Investors are underappreciating Wynns'' demand opportunity and liquidity profile, and the [stock] pullback is an attractive entry point. Wynn shares have dropped 23% year to date.
A prospective purchaser would have to assume that Wynns Vegas assets will not increase sales in 2022 and 2023, along with no lift in Macao this year, according to Wasiolek. This is unjustified.