Friday, June 15, 2012

Shorting the Dollar, Via These Three Multinationals

With seemingly endless budget deficits and the trade deficit again rising, many investors are looking to play against the dollar. While it’s become easier than ever to play the forex market directly, investing directly in currencies isn’t for everyone. Currency ETFs like FXE, FXC, and others are another choice – but ETFs can suffer from fees and tracking error over time. Can an investor short the dollar by playing the right stocks, and if so, how to find them?

Here’s a chart of a company that few think of as a dollar short play:

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