The Best Stocks for the Rest of Trump’s Term: Coca-Cola (KO)
The Coca-Cola Co (NYSE:KO) is a fine organization, making a product loved the world over. But, it doesn’t necessarily seem like a name poised to thrive under a Donald Trump Presidency. What gives?
There’s actually a savvy but subtle theory here.
It may be hard to believe, but roughly 60% of Coke’s business comes from overseas customers. An unusually strong dollar has made that business look and feel less fruitful than it really is, simply because the exchange rate saps its value upon conversion. If the greenback was weaker, Coca-Cola would mathematically become more profitable.
It matters simply because on more than one occasion Trump has commented he thinks the dollar is too strong for our own good. Whether he ever explicitly says it or not, he’s going to work to devalue the U.S. dollar.