Minyan Mailbag - More Repatriation
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.
Hello from Italy...
The gold market has been talking about the potential dollar repatriation for the last six months, but there has been one thing that hasn't convinced me about the impact on currency markets.
Isn't most of this money already in dollars???
Or why would Pfizer (PFE) be keeping the money in euros???
I can understand that their working capital in Europe would be in euros, but why would their excess capital not be in the same currency as their balance sheet.
Minyan Mattison Reinecke
We estimate that there is roughly $300 billion to repatriate. This has been known for a while and companies probably converted some already. What is left is not going to move the market. We also expect that most will go back over after the time limit to, as you point out, fund operations.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter