The surging dollar has hurt stocks outside the U.S. but one group at least stands to gain: companies that export to the world’s largest economy.
Those with significant dollar earnings are set for a windfall, with major beneficiaries including heavyweight Asian chipmakers and European industrial and pharmaceutical firms. Shares of exporters to the U.S. have already beaten a broad gauge of non-American companies this year, based on Goldman Sachs Group indexes.
"Exporters to the U.S. should benefit not only via currency translation, but also in terms of the trade advantage,” George Maris, chief investment officer for global equities at Principal Asset Management, said in an interview in London. "They should be able to show significant margin improvements, whether they’re European or Japanese or Chinese exporters.”
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