With regard to my earlier post about defense stocks, there is another clear cut advantage to defense manufacturers: Their products should retain virtually infinite pricing power, provided they stay on the leading edge technologically. A strong dollar should not affect the desirable nature of America’s defense hardware, for we are known to have the best technology. When it comes to security, buyers are not apt to scrimp. Other known domestic operators which consume oil as a raw material, or as a basic cost of doing business should also do well in this terrible environment.

Beware of multi-national earnings and lenders. Earnings visibility has become very cloudy…the dollar is key.