For the better part of two years now, investors have reaped the benefits of the declining U.S. dollar. It may seem counterintuitive, but the market and the dollar have a tendency to run inversely proportional to each other -- so when currency goes down, stocks usually go up.

Think about it this way: It takes more bills to equal the value of a product when the dollar is weak than when it's strong. Commodities have in particular seen a boost from the trend, for when faith in paper currency is lost, tangible items suddenly seem all the more precious.

Back when the bottom dropped out of the market, the Fed instated a Quantitative Easing program to print and pump money into the economy, and it's been going on ever since. This constant influx of paper has kept the dollar down and commodities high.

So what's the problem then? Well, that this simply can't go on forever. Many experts think that the dollar is nearing its point of inflection. As the price of in-demand commodities like oil and corn skyrocket, consumers will start to feel it at the gas pump and the supermarket -- and when the cost of living increases, spending decreases. At some point, the dollar must rise again.

And when that happens, commodities will probably take a hit.

Which materials stocks will suffer the most? Tough call -- so have a look at what the smart money is up to. Institutional investors have the know-how and resources to do the recon you can't, so it's not a bad idea to see where their money's going.

Here is a list of seven materials stocks that saw significant institutional selling over the last three months. The smart money seems to think these stocks will be hurt by a rising dollar -- what do you think? (Click here to access free interactive tools to analyze these ideas.)

Institutional trading data sourced from Reuters. The list has been sorted by change in institutional ownership over the last three months.

Company

Shares Held by Inst. Investors Today

Shares Held by Inst. Investors 3 Months Ago

% Change

SeaDrill Limited (Nasdaq: SDRL)

168,305,005

189,037,453

-10.97%

Arcelor Mittal (NYSE: MT)

38,446,563

42,875,981

-10.33%

Pioneer Natural Resources (NYSE: PXD)

106,424,688

110,948,284

-4.08%

Gerdau (NYSE: GGB)

128,637,885

133,037,762

-3.31%

Ternium (NYSE: TX)

24,146,571

24,891,943

-2.99%

Compania de Minas Buenaventura (NYSE: BVN)

118,777,416

121,354,879

-2.12%

Cimarex Energy (NYSE: XEC)

73,589,822

75,057,819

-1.96%

Interactive Chart: Press Play to see how analyst ratings have changed for all the stocks mentioned above.


Disclosure: Kapitall's Eben Esterhuizen and Alicia Sellitti do not own shares of any companies mentioned.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.