London Bridge is Falling Down

You want proof of “globalization”? Well, get this. Some US investors may be long-faced about the fall of the greenback but it seems British investors are up in arms about it – many UK large caps are exposed to the dollar through US investments. On a day when the major US indices barely breathe gain after yesterday’s bloodbath the FTSE, which is the UK’s index of the 100 biggest companies, is down for the sixth straight session.

If international investors are pulling money out of US equities in droves because of the dollar’s decline, one of the ‘excuses’ given for yesterday's market tumble, I can’t think of anywhere better than UK equities to put this money. The sterling, the British currency, is riding high against the greenback right now.

However, this doesn’t seem to be the case, at least going by the performance of the FTSE since the dollar lost it on Friday. So don’t let the weakening dollar keep you awake tonight again; the pain may be harder to swallow on the other side of the Atlantic.