Strong Plays With a Weak Dollar

With the euro flexing its muscle at a record levels against the dollar, Point View Financial Services president and chief investment strategist David Dietze has three ways to play the currency equation:  U.S. multinationals, foreign fund investments, and commodities.

Among multinationals, he mentions Procter and Gamble , Coca-Cola

, and McDonald's , companies that draw at least 50 percent of their revenues from foreign countries.

"The other way to go is go overseas yourself," he told CNBC.  "Buy into, say, a European sector fund...particularly a small-cap European sector fund, where they're getting most of their revenue in the euro, and then, of course, as the euro rises, you have more."

How to play commodities?

"Of course, in the stock market, that basically means your energy companies, because as the dollar depreciates, things like gold, copper, oil, are all going to go up," he said. 

In that category, he mentions Chevron , Conoco , and Freeport McMoRan .

"Those are all good plays for a weakening dollar scenario," he said.

But Dietze cautions that these traditional plays might already be played out.

"The question for investors, of course, is, 'Is what we're talking about right here, already priced in?'" he said.  "'To what extent have speculators and hedge funds already bid up the commodity stocks?'"

And that, he thinks, demands that investors once again start looking at U.S. assets.

"With the dollar on sale, you're seeing overseas companies want to establish operations here," he said.

© 2008 CNBC.com