Vang SJC
Investors should be wary of the strong U.S. dollar, Tom Lee told CNBC on Monday.

“If the dollar stays at this level, it’s going to be a headwind for earnings for the rest of the year, because we know there’s a translation effect on inflation and GDP. One of the things I think is uncertain is where the dollar [will be] six months from now,” the Fundstrat Global Advisors founder said on “Squawk on the Street.” “If investors think it will be stronger, there is going to be a headwind.”

The dollar index was down 0.70 percent at 99.57 late morning Monday as the euro edged off 12-year lows against the greenback. The DXY‘s downward turn comes after it hit 100.27 last week, its highest levels since 2003.

“When I speak to clients, they’re really focused on this Europe bond-proxy trading. The opportunity that’s taking place in Europe with QE, so I think there’s money flowing from the U.S. into Europe,” Lee also said.

U.S. stocks were up Monday, with the Dow Jones industrial average adding more than 190 points.

Source: CNBC

Linh Nhan