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Three Ways You Can Profit From the Falling Dollar

June 24, 2008

By Louis Navellier, Editor, Blue Chip Growth

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Louis Navellier

Louis Navellier

Louis Navellier is one of Wall Street's renowned growth investors. Investing for over 27 years, he has earned a national reputation as a savvy stock picker and portfolio manager. The New York Times called him "an icon among growth stock investors."

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Overseas demand for our products grows because our products are less expensive, which in turn leads to an increase in our exports to foreign countries.

Three Ways to Profit From a Falling Dollar

1. Buy foreign assets that are priced in currencies rising against the dollar.

These include currencies, stocks from countries with rising currencies and stocks from U.S. companies where half of their generated revenues are denominated in foreign currencies.

2. Buy commodities or companies that produce commodity infrastructure.

These companies include businesses that manufacture products such as farming equipment and drills. Potash of Saskatchewan (POT) and Agrium (AGU), for example, are fertilizer companies that are profiting enormously from worldwide demand for food and the weak dollar. Anyone who's turned on the news has surely heard about the global food shortage. Corn is in short supply everywhere and in order for farmers to meet the demand, they need tons of fertilizer – specifically, nitrogen fertilizer (see, "Grow Enormous Profits This Earnings Season"). Given the weak dollar, it's much cheaper for farmers to buy the required fertilizer from U.S.-operated companies.

3. Buy Multinational Corporations.

Companies like Colgate-Palmolive (CL) and McDonald's (MCD) earn lots of profits overseas and constantly convert those profits to dollars and earn more. Coca-Cola (KO) and Hewlett-Packard (HP) are also companies that generate big revenues overseas. Even if domestic sales lag, the international presence of these MNCs pretty much guarantees earnings growth.

So you see? There are plenty of investment opportunities to profit from a weak dollar. And while there are others who might take exception to my simple explanation, there's no denying that American goods become cheaper on the world market as the dollar weakens.

If you can buy a position in just a few of the companies benefiting from the falling dollar, you'll make out like a bandit. You're in luck because my Blue Chip Growth Buy List is filled to the brim with such companies. While many lament the dollar's decline, my Blue Chip subscribers are profiting handsomely. Trust your instincts and seize this major wealth-building opportunity today!