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5 Sectors That Profit From the Weak Dollar: Strategists

The U.S. dollar hit new lows once again for the year. So how should investors prepare their portfolios and benefit from the weak dollar? Kelli Hill, portfolio manager at Ashfield Capital Partners and Nicholas Colas, chief market strategist, ConvergEx shared their insights.

“We’re focusing on some of the companies and sectors that would benefit from a weaker dollar including industrials, basic materials, and energy,” Hill told CNBC. “I agree that if we start to see a continued decline, that could be somewhat disconcerting, but at these levels, clearly the beneficiaries are multinationals.”

In the meantime, Colas said the volatility of the dollar is going to determine the eventual effect on the economy.

“The move has been fairly sharp for the past couple of days but over the longer term, it has been fairly modest—as long as we continue along that path, I’m less worried,” he said.

Colas said he likes the financial sectors.

“The yield curve still benefits their overall earnings profile,” he said of the financials. “There are some major problems to get through commercial real estates, but in terms of looking at early part of a cycle and hopefully the cycle that continues into 2010, financials tend to be early movers.”

“We also like technology very much,” he added.

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Disclosure:

No immediate information was available for Colas or Hill.

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CNBC Slideshows:

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Top Industrial Companies:

Caterpillar

Honeywell

Deere

United Technologies

General Electric

(GE is the parent company of CNBC and CNBC.com)

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