Conclusion to take advantage of the falling dollar.
February 21st, 2010
Values, both international and domestic, provide another area for investors to take advantage of a slip in the dollar. If the forecast looks bleak for the U.S. securities markets, some foreign markets may be poised to profit. Of course, there are also U.S. stocks that could benefit from a falling dollar. Large multinational firms that have foreign markets to generate much of their profits benefit when the dollar weakens because it makes a pound or Japanese yen in a greater amount of U.S. dollars. Some names like Procter & Gamble (NYSE: PG), General Electric (NYSE: GE) and PepsiCo (NYSE: PEP) come to mind.
Conclusion:
Investors should not suffer because of the weak dollar. The methods to protect their own investments, dollar-based, are varied and
effective coverage can be more than just protection: can boost a portfolio's bottom line. Additionally, the fact that it is a globalized economy means that there are global opportunities that would enable investors sleep a little more easily when the dollar falls.
Tags: global economy, investments, Pound Sterling, weak dollar