Best Ways to Invest on Weak Dollar: Stock Picker

The dollar hit its lowest level in more than eight monthsagainst the euro Friday, after Federal Reserve Chairman Ben Bernanke reinforced expectations of further monetary policy easing. Robert Pavlik, chief market strategist at Banyan Partners and Rob Morgan, chief investment strategist at Fulcrum Securities discussed their insights.

“Our favorite sectors with the declining dollar are large-caps as well as energy and materials and international stocks,” Pavlik told CNBC.

Pavlik said he expects the dollar to decline further as long as there’s expectation that the Fed will continue printing money.

“Once the Fed says that’s off the table, that trend probably stops,” he said.

In the meantime, Morgan said his weak dollar play is to invest in companies that have great exposure overseas.

Morgan’s Picks Include:

Terex —“It gets 75 percent of revenue from overseas sales,” he said of the firm. “It’s a terrific company and it’s got expansion into China.”

EMC—“There has been some rumor that it’s a takeover play, but look past that because they get over 50 percent of their revenue from overseas sales.”

Morgan also likes the energy sector, specifically natural gas and oil. He said Anadarko Petroleum and Transocean are ways for investors to get exposure.

Scorecard—What They Said:

  • Morgan's Previous Appearance on CNBC (Sept. 30, 2010)
  • Pavlik's Previous Appearance on CNBC (Oct. 5, 2010)

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No immediate information was available for Morgan or Pavlik.