July 21, 2020, 9:59 am EDT
Consequences of Falling US Dollar
Another round of money printing or called Coronavirus relief plan, is on the table to be discussed and approved by the end of July by the US congress. The effect of the piling dollar caused the US dollar currency to keep falling from March 28.9 to 25.9 (UUP). Here are potential winners for the falling of US dollar
- Energy: crude oil
- Basic Material: steel, copper, aluminum
- Precious Metal: gold, silver
- Food Products: beef, chicken, pork and packaged food
Today is an ideal day to monitor this phenomenon through their stock performance:
- Energy: OXY +10%, DVN +9%, HAL +9%, XOM +5%
- Basic Material: AA +4%, DOW +2%
- Precious Metal: NEM +2%
- Food Products: KO +3%, KR +2.5%, MDLZ +3%
Since currency movement could be a longer term change, it would be reasonable to add stocks in these categories for long term positions (3-6 months) in the portfolio.
