Image alt tag

Error!

X

There was a problem contacting the server. Please try after sometime.

Sorry, we are unable to process your request.

Error!

X

We're sorry, but the Insights and Intelligence Tool is temporarily unavailable

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Error!

X

We're sorry, but the Literature Center checkout function is temporarily unavailable.

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Tracked Funds

You have 0 funds on your mutual fund watch list.

Begin by selecting funds to create a personalized watch list.

(as of 12/05/2015)

Pending Orders

You have 0 items in your cart.

Subscribe and order forms, fact sheets, presentations, and other documents that can help advisers grow their business.

A verification Email Has Been Sent

Close

An email verification email has been sent to .
Follow the instructions to complete the email validation process.

I have not received my verification email

Check your SPAM mailbox and make sure that twelcome@lordabbett.com is allowed to send you mail.

I'm still having trouble

If you're still having trouble verifying your email address. feel free to contact us.

1-888-522-2388
clientservices@lordabbett.com


OK

We're sorry. We found no record of the email address you provided.

Close

Register For a LordAbbett.com Account
Using Your Email Address.

  • Registered Financial Advisors gain access to:
  • Our data mining tool, Insight & Intelligence
  • Best in-class practice management content
  • Educational events, videos and podcasts.
  • The Lord Abbett Review - Subscribe now!

Registered but Having Problems?

If you believe you are registered and are having problems verifying your email address, feel free to contact us.

1-888-522-2388 clientservices@lordabbett.com

Terms & Condition

X

These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

2. Your Privileges. · Personal Use. Your use of the Intelligence System is a nontransferable privilege granted by us to you and that we may deny, suspend or revoke at any time, with or without cause or notice. · Access to and Use of the Intelligence System. The User ID and password (together, an "Access ID") issued by us to you (as subsequently changed by you from time to time) is for your exclusive access to and use of the Intelligence System. You will: (a) be responsible for the security and use of your Access ID, (b) not disclose your Access ID to anyone and (c) not permit anyone to use your Access ID. Any access or use of the Intelligence System through the use of your Access ID will be deemed to be your actions, for which you will be responsible. · Required Technology. You must provide, at your own cost and expense, the equipment and services necessary to access and use the Intelligence System. At any time, we may change the supporting technology and services necessary to use the Intelligence System. · Availability. We make no guarantee that you will be able to access the Intelligence System at any given time or that your access will be uninterrupted, error-free or free from unauthorized security breaches.

3. Rights in Data. Our use of information collected from you will be in accordance with our Privacy Policy posted on the LAIS Site. Our compliance with our Privacy Policy will survive any termination of these Terms of Use or of your use of the Intelligence System.

4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

· Remove, obscure or alter any notice, disclaimer or other disclosure affixed to or contained within the Intelligence System, including any copyright notice, trademark and other proprietary rights notices and any legal notices regarding the data, content or information provided through the Intelligence System.

· Create a hyperlink to, frame or use framing techniques to enclose any information found anywhere on the LAIS Site without our express prior written consent.

· Impersonate any person, or falsely state or otherwise misrepresent his or her affiliation with any person in connection with any use of the Intelligence System.

· Breach or attempt to breach the security of the Intelligence System or any network, servers, data, or computers or other hardware relating to or used in connection with the Intelligence System; nor (b) use or distribute through the Intelligence System software or other tools or devices designed to interfere with or compromise the privacy, security or use of the Intelligence System by others or the operations or assets of any person.

· Violate any applicable law, including, without limitation, any state federal securities laws. 5. Your Representations and Warranties. You hereby represent and warrant to us, for our benefit, as of the time of these Terms of Use and for so long as you continue to use the Intelligence System, that (a) you are, and will continue to be, in compliance with these Terms of Use and any applicable laws and (b) you are authorized to provide to us the information we collect, as described in our Privacy Policy.

6. Disclaimer of Warranties.

· General Disclaimers.

THE INTELLIGENCE SYSTEM, THE LAIS SITE AND ALL DATA, INFORMATION AND CONTENT ON THE LAIS SITE ARE PROVIDED "AS IS" AND “AS AVAILABLE” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND. WITHOUT LIMITING THE PRECEDING SENTENCE, LORD ABBETT, ITS AFFILIATES, AGENTS, THIRD-PARTY SUPPLIERS AND LICENSORS, AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, DIRECTORS, OFFICERS AND SHAREHOLDERS (COLLECTIVELY, THE “LORD ABBETT GROUP”) EXPRESSLY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. YOU EXPRESSLY AGREE THAT YOUR USE OF THE LAIS SITE, THE INTELLIGENCE SYSTEM, AND THE DATA, INFORMATION AND CONTENT PRESENTED THERE ARE AT YOUR SOLE RISK AND THAT THE LORD ABBETT GROUP WILL NOT BE RESPONSIBLE FOR ANY (A) ERRORS OR INACCURACIES IN THE DATA, CONTENT AND INFORMATION ON THE LAIS SITE AND THE INTELLIGENCE SYSTEM OR (B) ANY TERMINATION, SUSPENSION, INTERRUPTION OF SERVICES, OR DELAYS IN THE OPERATION OF THE LAIS SITE OR THE INTELLIGENCE SYSTEM.

· Disclaimer Regarding Investment Research.

THE INTELLIGENCE SYSTEM INCORPORATES DATA, CONTENT AND INFORMATION FROM VARIOUS SOURCES THAT WE BELIEVE TO BE ACCURATE AND RELIABLE. HOWEVER, THE LORD ABBETT GROUP MAKES NO CLAIMS, REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY, TIMELINESS, COMPLETENESS OR TRUTHFULNESS OF SUCH DATA, CONTENT AND INFORMATION. YOU EXPRESSLY AGREE THAT YOU ARE RESPONSIBLE FOR INDEPENDENTLY VERIFYING YOUR INVESTMENT RESEARCH PRIOR TO FORMING YOUR INVESTMENT DECISIONS OR RENDERING INVESTMENT ADVICE. THE LORD ABBETT GROUP WILL NOT BE LIABLE FOR ANY INVESTMENT DECISION MADE BY YOU OR ANY OTHER PERSON BASED UPON THE DATA, CONTENT AND INFORMATION PROVIDED THROUGH THE INTELLIGENCE SYSTEM OR ON THE LAIS SITE.

· Survival.

THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

7. Limitations on Liability.

NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

8. Miscellaneous Provisions.

· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

The Intelligence System is not intended to be used by consumers, nor are the consumer protection laws of any jurisdiction intended to apply to the Intelligence System. You agree to initiate and maintain any action, suit or proceeding relating to these Terms of Use or arising out of the use of the Intelligence System exclusively in the courts, state and federal, located in or having jurisdiction over New York County, New York.

YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

Reset Your Password

Financial Professionals*

Your password must be a minimum of characters.

Confirmation Message

Your LordAbbett.com password was successully updated. This page will be refreshed after 3 seconds.

OK

 

Economic Insights

Worries that the elevated value of the greenback will crimp U.S. exports—and hurt corporate profits—are overstated.

The dollar certainly has put on a show of late. Over the last six months, it has gained some 13% against the yen, 21% against the euro, and 12% against the world when weighting various currencies according to their importance in U.S. trade.1 Some believe these gains confer bragging rights for Americans. The investment community has shown more concern than anything else. It fears that the appreciation will price out U.S. exports from global markets and so threaten the U.S. economy’s manufacturing renaissance. There also is a concern that a higher-priced dollar will detract from the translation of foreign earnings for those firms that have major overseas operations. These are legitimate concerns, but they may easily be overstated.

The Translation Effect
The translation effect is mostly a matter of bookkeeping. A firm with a major operation in, say, Europe, makes that part of its earnings in euros. To produce a consolidated earnings statement in U.S. dollars, it must translate those euro earnings into dollars, even if it never actually converts the money. The stronger the dollar, the less these earnings will count in dollar terms, making the consolidated earnings look weaker than otherwise. Because the Wall Street analytical community often fails to fully account for this effect, it can surprise investors when earnings are announced. But there is seldom much impact on the U.S. economy or even the real performance of the company in question.    

For one thing, the shortfall in dollar sales only occurs in the quarter in which the dollar appreciates. If the dollar then retains its new, higher level, the dollar level of the following quarter’s sales may remain lower than before the dollar appreciated, but the earnings decline does not recur. For the translation effect to do further damage, the dollar would have to appreciate quarter after quarter. This translation effect hits exporters less than companies with ongoing operations overseas. Exporters typically write their contracts in dollars. A rise in the dollar may affect sales (a matter discussed in the next section), but there is no translation effect except in those very rare instances when the trade contract is written in a depreciating foreign currency.     

Even among the firms that have large overseas operations, the impact, particularly on the U.S. economy, is usually small. Some of these firms are so entrenched in those foreign markets that they do all their sourcing and production there, as well as the sales. Many, because of the United States’ virtually unique corporate tax code, have no intention of ever repatriating the earnings from such operations. In such cases, the currency effect truly is just a matter of bookkeeping. The impact on U.S. economic activity is next to nothing because so little of the production has roots in the domestic economy. The firm itself has no reason to react in any substantive way, or even change what it is doing at all, for that matter. With costs and revenues fully denominated in a foreign currency, the dollar only matters in a consolidated statement, not in the underlying profitability of the overseas operation.      

There are, however, some firms that do supply their overseas effort with materials produced in the United States. The dollar’s appreciation in such a case could raise costs to the operation and, accordingly, reduce its profitability, thereby enlarging the effect beyond one of bookkeeping. Of course, that increased cost may prompt management to source elsewhere than in the United States, in which case the firm could protect the overseas operation’s profitability, but do so only at the expense of reduced economic activity in the domestic economy.

Trade
Besides these effects, the dollar’s rise, which has pushed up the price of U.S.-based production to the rest of the world and reduced foreign prices to Americans, will adversely affect the country’s balance of trade and, by implication, the overall economy. That effect is already evident. Exports growth has slowed. After rising 4.0% during 2013, total exports of goods and services from the United States have expanded by only 1.4% this past year. Imports have accelerated. After expanding a mere 1.1% in 2013, they jumped 3.4% this past year. The balance of imports and exports has inevitably deteriorated from an annualized deficit of $400 billion at the end of 2013, down from a deficit of more than $506 billion at the close of the prior year, to an annualized deficit of more than $512 billion recently, giving up more than all the gains of 2013.2  

The deterioration, however, was highly inconsistent across industries. Because higher-value-added products are less price sensitive, they have suffered less from currency swings than lower-value-added, commodity-like products, which are more easily sourced elsewhere and so are much more sensitive to the price effects of the dollar’s recent rise. This distinction clearly is evident in the classic divide between goods and services. 

Fully half this country’s service exports and slightly more than half of its imports lie in sophisticated, less price-sensitive areas such as financial and other business services, telecommunications, and licensing fees for intellectual capital. Accordingly, service exports have hardly slowed at all, despite the dollar’s rise, growing 3.1% in the past year, a barely noticeable deceleration from the 3.2% expansion in 2013. Imports showed a similar insensitivity, accelerating hardly at all from 3.1% growth in 2013 to 3.2% during this past year.

It is a different story for trade in goods. Because so many of these are lower-value, commodity-like items, currency shifts have had a much greater impact here than in services. Goods exports overall slowed markedly from a 4.0% growth pace in 2013 to only a 1.4% pace of advance during this past year. Goods imports similarly showed a more marked acceleration in response to the price effects of the dollar’s appreciation. After growing only 0.8% in 2013, imports jumped 3.4% during the past year. The difference between high- and low-value-added items is still more evident in subsectors of U.S. trade. For example, exports of capital goods, generally a high-value item, held up well despite the dollar’s rise, gaining 3.0% during the past year, while exports of industrial supplies, generally lower-value, more commodity-like items, suffered a decline of 0.4%. Excluding the special case of crude oil and other petroleum products, exports of this subgroup actually dropped a sharp 3.3%. The immense detail of other product sectors and subsectors, though too much to go through here, also testifies to the greater sensitivity of lower-value-added products in both imports and exports and the relative insensitivity of higher-value items to currency shifts.

Looking Forward  
To be sure, imports and exports last year responded to more than just the dollar’s rise. Still, the consistency of the pattern signals what to expect in the future as the dollar continues to make gains. Especially as the Federal Reserve likely will raise interest rates, further dollar strength should cause a faster deterioration in U.S. trade, as imports rise above where they would otherwise be and exports fall below where they would otherwise be. The overall effect will reinforce other factors that are already keeping this recovery historically slow, though even the combination of effects is unlikely to precipitate a recession. And because the most damage will occur among low-value products, the net effect at the margin will reinforce the ongoing shift in this country’s economic focus and the flows of investment monies toward higher value-added products and processes.

 

RELATED TOPICS

ABOUT THE AUTHOR

Lord Abbett's Blog

videoOur new blog features timely commentary and analysis from Lord Abbett experts. Join the conversation.

RELATED CONTENT

Please confirm your literature shipping address

Please review the address information below and make any necessary changes.

All literature orders will be shipped to the address that you enter below. This information can be edited at any time.

Current Literature Shipping Address

* Required field