Repatriation Billions of Cash Back To USA!!

The United States is home to many of the biggest and most profitable companies in the world. These are global companies making profits in literally hundreds of countries. The problem, these large US based companies have been leaving their cash in foreign countries, not bringing these profits home. The numbers are truly amazing.

As of 2017, Microsoft, for example, had 97% of all its company cash held outside the US. Johnson & Johnson had 98.6% of its cash holdings offshore, Cisco 95.7%, Apple 93.3%, Pepsi 96.9%, and the list goes on and on. The total dollar amount held overseas by these companies, an estimated $2.7 trillion. Wow.

The new tax law passed in November of 2017 lowers tax rates for these corporations, a provision designed to coax these companies into bringing most of this $2.7 trillion back to the US. This amount of money flowing back should help our economy. It should also help the value of our dollar as you can see from our next chart.

As you can see, the dollar's starting to gain strength against other currencies. We expect these trends to be a positive catalyst for the US economy and markets. We will keep you posted. Please let us know if you have any thoughts or questions. See you soon.

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