Stocks That Could Benefit From The Debt Crisis

Stocks That Could Benefit From The Debt Crisis : It is no secret that America is struggling with an enormous national debt. As of the time of this writing, the national debt stands at slightly over $14 trillion. To put that into perspective, that is roughly $46,000 of debt for each American citizen, and $129,000 for each U.S. taxpayer. Running such a high debt leads to global concern over the stability of the dollar. As a result, the dollar recently hit a 3-year low against the euro, and just last week it hit an all-time low against the Swiss franc. But a weak dollar can actually help some companies, so let’s look at five stocks that could benefit from America’s debt crisis.

Goldcorp Will Continue to Benefit From a Weak Dollar
An obvious beneficiary from a weakening dollar is Goldcorp Inc. Since gold trades inversely proportional to the dollar, gold prices will continue to remain high as long as the global view of the U.S. dollar remains weak. As the dollar has weakened over the past couple of years, Goldcorp stock has been steadily rising and a recent pullback in the stock has created a great buying opportunity. Gold prices retreated a bit at the start of May, but have been rebounding over the past few weeks, and should continue to climb as long as America's debt crisis continues to weigh on the dollar.

Chevron Should Benefit from Strong Oil Prices
Another commodity that benefits from a weak dollar is oil. Oil prices have been soaring this year, and despite a recent pullback in price, oil is still trading above $100 a barrel, and will probably head higher as the summer progresses. Chevron is in a great position to benefit from rising oil prices. Another factor working in the company's favor is that it does a sizable amount of business worldwide. As the dollar weakens, any revenue that a company is able to earn internationally will benefit the company's bottom line here in America. Chevron stock has been steadily rising over the past two years, and despite the fact that it is trading near its 52-week high, the stock should continue to rise as the debt crisis weakens the dollar and boosts oil prices. The stock recently hit a 52-week high, but has pulled back to offer a buying opportunity for investors looking to capitalize on oil's current strength.

GE's Strong International Presences Puts it in Great Shape
Companies that export a lot, like General Electric, tend to do well when the dollar is weak. General Electric enjoys massive product diversification, and exports so many products that a weak dollar really plays into his hands. In addition to its massive exports, General Electric is also looking to capitalize on lower costs here in America to bring some of its production that it had formerly outsourced overseas back to the states. The company recently decided to start producing some of its water heaters in Louisville, Kentucky instead of China where it had previously moved production. By capitalizing on strong exports, while at the same time taking advantage of lower costs in America, General Electric is positioning itself to take full advantage of the weak dollar that America's debt crisis has created.

Caterpillar's Exports Look Very Attractive With a Weak Dollar
Caterpillar has a couple of factors working in its favor right now in terms of its export business. First of all, its exports are strong as developing countries around the globe are moving quickly to build infrastructure that is able to keep up with their growing economies. Caterpillar boasts one of the most recognizable names in construction machinery, and this alone works to its advantage in times of rapid construction expansion. Making the company's goods even more attractive is the weak dollar, which lowers Caterpillar's prices abroad. The weak dollar in combination with global expansion is the perfect combination for Caterpillar. The stock hit a new 52-week high in early May, but has pulled back a bit off its high. It has been in a very strong upward trend over the past two years and should continue to trade higher throughout the remainder of 2011

A Weak Dollar Works in McDonald's Favor
Any company that has a strong multinational business will do okay in any economic climate and McDonald's has as strong of a global presence as any company. McDonald's may be the "all-American" hamburger company, but people may be surprised to hear that the company earns nearly two-thirds of its revenue from outside the United States. A weak dollar makes all of its international revenues worth more, so the company welcomes the weak dollar, and its stock has reflected this advantage over the past couple of years. The stock recently set a 52-week high, but should continue to trade higher while the dollar remains weak. McDonald's is rapidly growing its operations in developing countries and an extended period of a weak dollar will keep revenues, and the company's stock prices, headed higher.Source www.marketintelligencecenter.com.. For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post: