This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Seven Stocks That Benefit From a Falling Dollar

The U.S. dollar is making headlines. As of early January, the battered greenback was down more than 32% from its peak in early 2002 against the euro and roughly 20% against the Japanese yen.

With the U.S. running a huge trade deficit and huge budget deficit, many foreign investors are convinced that the U.S. government wants the dollar to continue to fall.

The outlook for the dollar is so bad that Warren Buffett, for the first time in his investing life, has bought foreign currencies. Buffett notes that he's been wrong before in his worries about the consequences of rising U.S. deficits, but, as he told Fortune magazine in late 2003, "this time I'm backing it with Berkshire Hathaway's money."

I'd agree it's difficult to see the dollar doing anything but slipping further over the next year or more, and in the long run, a weaker dollar isn't good news for the U.S. economy or for U.S. consumers. A weaker dollar puts increasing pressure on the Federal Reserve to raise interest rates, because, as a debtor country, the U.S. has to continue to attract huge amounts of foreign capital. Consumers face higher prices for foreign imports, and besides taking a bite directly out of our wallets, rising prices for imports increase the odds that inflation will creep higher.

But that's in general and in the long run. In particular and in the short run, investors can profit from a falling dollar -- and that's without speculating in currency futures or buying a truckload of gold.

A few sectors of the economy will make unexpected gains over the next year or two from a falling dollar. By buying good old common stocks in these sectors, you can make a profit.

The auto-supply sector is likely to be a prime beneficiary of a falling dollar. The stocks in this sector I believe should be on your radar include:

7 Big Auto-Parts Makers to Consider
Company Primary business
BorgWarner (BWA) Powertrains, transmissions
Dana (DCN) Axles, drive shafts
Dura Automotive (DRRA) Driver control systems
Lear (LEA) Interior systems and components
Magna International (MGA) Interior systems, including instrument and door panels
Superior Industries International (SUP) Automotive wheels and suspensions
Tower Automotive (TWR) Structural components, suspension systems

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs