12 KIPLINGER’S PERSONAL FINANCE^ 05/
AHEAD
argue that a sharp increase
in the value of the dollar
would help offset any price
hikes. Here’s how: The tax
break for U.S. exporters
would allow those compa-
nies to lower prices initially,
which would increase de-
mand for their products
overseas. That, in turn,
would boost demand for
dollars, driving up the value
of the greenback by 20% or
more. A stronger dollar
would increase purchasing
power for U.S. companies
and consumers who buy
materials or products from
overseas, thus offsetting the
higher tax on imports.
Because a BAT has never
been tried, it’s unknown
how long it would take to
reach that kind of equilib-
rium. Currency traders
might buy dollars in antici-
pation of a policy change,
hastening the greenback’s
rise. But economists at the
Institute on Taxation and
Economic Policy, a nonpar-
tisan research group, say
the adjustment overall
could take years, and in
the meantime, at least some
portion of the tax would be
passed on to consumers.
If you’re planning a trip
to Paris, a stronger dollar is
great news, but it has its pit-
falls, too, particularly where
your portfolio is concerned.
As the dollar rises, it de-
presses returns from invest-
ments denominated in for-
eign currencies. One way
around that problem is to
look for funds that hedge
their currency exposure,
such as FMI INTERNATIONAL
(SYMBOL FMIJX), a member
of the Kiplinger 25, the list
of our favorite funds (see
page 50). RYAN DONNELL
INTERVIEWRETAILERS HAVE
THEIR EYE ON YOU
When stores track your shopping, you get
discounts and they get your personal info.Joseph Turow is a professor
of communication at the
University of Pennsylvania
and author of The Aisles
Have Eyes: How Retailers
Track Your Shopping, Strip
Your Privacy, and Define
You r Power.Why are retailers tracking us?
They want to send mes-
sages to customers based on
their history with the store,
their location in the store
and their value to the store.
For example, a store may
see that you’re near the
women’s shoe department
and know that you’ve pur-
chased shoes there be-
fore. It then sends
you a text message
or an advertise-
ment via the
store’s app on
your phone of-
fering you 20%
off if you buy
shoes in the
next hour.How do retail-
ers track their
customers? Inside
the store, many re-
tailers—particularly
the largest chains—
use devices called
beacons, which
connect to your
phone’s Bluetooth
signal. Stores can
also track youthrough your phone’s
Wi-Fi connection. Outside
the store, retailers can track
you with GPS. If you’re near
competitors, for example,
retailers might send you
advertisements or coupons
to lure you to them instead.
When you use a frequent-
shopper card, you allow
a company to collect data
about what you buy, too.Can customers use any tricks
to get discounts? If you save
a coupon on your phone to
use in a store, keep it there
for a while. Or when you’re
shopping online, put some-
thing in the cart and leave
it there without buying. If
the store thinks you’re not
going to act, it may offer
you a larger discount.What else do stores do with
the information they collect?
If you look at companies
that sell marketing data,
such as Acxiom and Ex-
perian, a lot of what they
have comes from retailers.
A store might, say, sell in-
formation about which
over-the-counter drugs
you buy to a company that
wants to sell you insurance.What’s the harm? There are
winners and losers. In a
way, we’re back to the era
of peddlers, who used what
they knew about customers
to charge them different
prices or show them differ-
ent items. Some companies
might want your business
because of your salary or
how much you spend. But
if you’re not valuable to a
store—say, because you
only buy bargains—it
will ignore you.How can customers
protect their privacy?
If you don’t want to
be tracked in a store,
shut off Wi-Fi and
Bluetooth connec-
tions. Avoid using
the store’s app,
participating
in its loyalty
program or
paying with a credit
card. LISA GERSTNER