What Stocks and Real Estate to Buy as the Dollar Falls
In recent weeks the dollar has been losing ground to key currencies. The greenback is down 2.6% this month compared with the euro, and 5.4% year-to-date. Bu what may be bad for the dollar can be good for investors – if you know where to look.
Companies that make goods in the United States and export them globally should do well in an environment of a falling dollar. These companies benefit by producing goods in dollars, but getting paid for them in currencies like the euro.
Many analysts suggest the technology sector is a good one to invest in when the dollar is down. ETFs such as the Vanguard Information Technology ETF and iShares S&P Global Technology invest in companies that stand to benefit from a declining dollar.
Pharmaceuticals is another promising area. Companies like Bristol-Myers Squibb, Pfizer, and Merck all make drugs in the U.S. and sell them around the world.
The falling dollar could also help the U.S. real estate market as American properties become cheaper for overseas buyers.