The U.S. dollar continues to sink against major currencies, but some sectors are using this phenomenon to their advantage. Sassan Ghahramani, CEO of Medley Global Advisors and Donald Straszheim, vice-chairman of Roth Capital Partners joined CNBC’s “Power Lunch” to discuss the impacts of the lower dollar and who wins in this type of environment.
Although the troubles in the U.S. mortgage and credit markets have been faulted for dampening the currency's appeal, there is a sense that the subprime troubles are relatively containable, said Ghahramani.
There is "a benign sense of relief,” he said, adding “Markets (will be) going back to business, and the money will be put back to work."
That's because the recent weakness in the dollar is not a “malignant sell-off” of the currency, and the lower dollar will not be enough for the U.S. to pull the international markets down.
Straszheim said he expects the dollar to remain weak due to a “fundamental trade deficit that’s not likely to decline anytime soon. It will probably get worse.”
Who wins? Straszheim said U.S. exporters are clear winners.
Ghahramani agrees, but also thinks investors should look at the energy sector. As the price of oil rises, the commodities and energy complexes are going to continue to perform well, he said.
“The dollar is going down and global consumption is still relatively high, and we don’t expect a major slowdown," Ghahramani said. "We’re in a fundamental bear run in those sectors.”