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Kensho Trade: Wall Street sees weak dollar ahead

U.S. Dollars
Bay Ismoyo | AFP | Getty Images

With the Federal Reserve more dovish than expected on March 16, many on Wall Street are predicting a weaker U.S. dollar from here. Which stocks can investors buy on the trend, using history as a guide?

JPMorgan told clients Thursday to favor U.S. multinationals on a falling greenback. CNBC Pro screens using Kensho, a hedge fund analytics tool, came to this conclusion as well.

"We believe last week's dovish Fed outcome opened up the path for" multinationals to make a comeback vs. the S&P 500, JPMorgan U.S. equity strategist Dubravko Lakos-Bujas wrote in a note to clients Wednesday. "Multinationals have stronger balance sheets with higher cash levels and lower leverage."

A JPMorgan index of U.S. multinationals has underperformed the S&P 500 by about 40 percent since the end of 2013.

Using Kensho, we looked at how firms in the Dow Jones industrial average performed when the dollar index declined by 4 percent or more in one month during the last decade.