For those worried about the U.S. Dollar, it may bring you comfort that currency analysts are expecting it to actually do well over the next few years (or it may make you even more scared). Below we highlight the consensus estimates for various currencies from their current levels through 2011.
As shown, the Euro is expected to decline steadily versus the U.S. Dollar to a level of 1.25 by 2011. The only currencies expected to gain versus the $ from now to 2011 are the Russian Ruble, Indian Rupee and Japanese Yen.
If you think the $ is hitting a bottom, equities that derive most of their revenues domestically should start to do better. If not, stick with names that bring in plenty of international revenues. As the Bespoke International Revenues Index shows, stocks with a global presence have outperformed in recent years.