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Ben Burns the Buck

Earlier this week, Wall Street fiddled while the city was burning. Well, not so much the city as the specie that makes it possible -- the almighty buck. After this week's 0.5% rate cut by the Federal Reserve, stocks shot up across the board. Politicians like Ben Bernanke and George Bush have been jawboning the housing market issues, but it took a couple of days for the fallout to begin landing and lighting up the landscape.

We're seeing the results now. The dollar hit an all-time low of $1.40 per euro today, and for the first time in about a billion years, it's at parity with the Canadian Loonie. This is, of course, a direct result of the Fed's recent return to a loose money policy, as well as years of fiscal profligacy by our free-spending Congress and president.

I think it could be a long while before the buck stops sliding or stages a recovery. The Street needs its Fed fix, and with election season upon us, the politicians are going to keep on doling out that greenback-sweetened vote sauce.

My advice? Move more money into companies that do their business overseas and do that business in foreign currencies -- euro, yen, pesos, rupis, magic beans -- so long as that company doesn't depend entirely on exports to the U.S.

For my part, that means buys of Gigamedia (NYSE: GIGM  ) , south-of-the-border beverage companies such as Coca-Cola Andina (NYSE: AKO-A  ) , strong Asian industrials like Tata Motors (NYSE: TTM  ) , or staple commodity sellers like PetroChina (NYSE: PTR  ) . U.S. companies that are growing overseas revenues at a good clip, such as Guess? (NYSE: GES  ) and Fossil (NYSE: FOSL  ) , are also good ideas.

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Related Tickers

10/21/2016 4:02 PM
GES $13.87 Down -0.08 -0.57%
Guess? CAPS Rating: ***
PTR $71.14 Down -0.35 -0.49%
PetroChina CAPS Rating: ***
TTM $40.45 Down -0.38 -0.93%
Tata Motors CAPS Rating: ****