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Beware Strong US Dollar Into Earnings: Pro

Beware Strong US Dollar Into Earnings: Pro

Overseas profits will impact corporate bottom lines as earnings season begins, Biltmore Capital CIO Tyler Vernon said Monday.

"I think the big thing that investors need to pay attention to is the strong dollar," he said. "People continue to forget that almost 60 percent of earnings in the S&P 500 are coming from countries outside of the U.S., and when you convert that into U.S. dollar-denominated earnings, you're going to see some real headwinds."

On CNBC's "Fast Money," Vernon added that foreign earnings would be "the excuse du jour as earnings season continues to unfold."

Vernon also said that the market was not factoring a couple of indicators for stocks.

"Investors have not heeded warnings from the commodities markets showing the slowdowns or from bond markets," he said. "They've shrugged off … jobs numbers, and I think when you have 100 companies in S&P 500 or more that are revising downward, it's a reason to start getting concerned."

Global liquidity can't be a continued focus, either, he added.

And while commodity prices are likely to rise, it doesn't mean that they'll help push stocks higher, Vernon said.

"Stock prices have to come down to meet where prices are in commodities," he added.

Trader disclosure: On April 5, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long BBRY; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long GE; Stephanie Link is long IBM; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long GS; Simon Baker is long SBUX; Simon Baker is long DELL; Simon Baker is long WFM; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long TGT; Josh Brown is long JNJ; Josh Brown is long DXJ; Josh Brown message: "No shorts, no banking."