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Procter & Gamble, The Strong Dollar, And Pepto Bismol

Applied Materials (AMAT). Boeing (BA). Coach (COH). Ford (F). Intel (INTC). McDonald’s (MCD). Nike (NKE). Pfizer (PFE).</p>

What do those household-name companies have in common? Not much, other than that a huge part of the sales come from outside the U.S.

Really, really huge.

Collectively, the 500 companies in the S&P 500 get 46% of their sales and roughly 50% of their profits from outside the U.S. They are truly multinational giants.

Expanding your customer base is always a good thing, but doing business overseas is not without peril, and one of the underappreciated perils is the impact of currency movements. A stronger dollar can hurt companies that do a large share of their business overseas because sales in other countries translate back into fewer dollars.

Just ask Procter & Gamble (PG), which reported their Q4 results last week.

P&G sold $20.16 billion of toothpaste, laundry detergent, diapers, toilet paper,… Read More …