It is no secret that over the past few years, I’ve been pretty bearish on IBM (IBM). The company’s complete lack of strategy to deal with its legacy business has been a huge turn off and while it does have its strategic initiatives to drive some growth, the legacy business remains unequivocally terrible. However, the weakness in the US dollar (UUP) has given IBM a mighty fine tailwind it sorely needs and below, I’ll quantify what that means for the stock.
We’ll begin with a look at the dollar as represented by the widely traded ETP. This is a weekly look at the dollar for the past two years and as you can see, the action in 2017 has been very one-sided and favors multinationals like IBM in a big way.
