This has had a negative effect on commodity prices. It has also brought considerable relief to consumers in the form of lower gas prices.

However, US exporters have watched their products become 10% more expensive in just two months.

Andrew Gordon says shorting US stocks with a heavy reliance on overseas sales is a great way to profit from US dollar strength. He lists the ten companies most vulnerable to further gains in the buck.

This from Investor’s Daily Edge:

There’s lots of ways to trade a strengthening dollar. One of the ways is to bet against the companies hurt by a dollar increasing in value.

Companies that rely on exports and overseas sales for a substantial portion of their total revenue would certainly qualify.

In a matter of a couple of months, their goods and services have become around 10 percent more expensive in overseas markets. Put another way, overseas customers are now paying a 10 percent premium on what they are now buying from U.S. companies.

It’s got to hurt sales and overseas sales revenue. And that is what some investors are counting on.

According to Bespoke Group, since mid-July, the 106 companies in the S&P 500 with more than 50 percent or their revenues coming from overseas markets have underperformed their benchmark index. Investors are selling and playing them short.

The ten with the highest international exposure are:

Philip Morris International (NYSE:PM) (100 percent exposure),

Newmont Mining (NYSE:NEM)(95 percent),

NVIDIA (NASDAQ:NVDA)(92 percent),

Advanced Micro Devices (NYSE:AMD) (88 percent),

Texas Instruments (NYSE:TXN) (87 percent),

Qualcomm (NASDAQ:QCOM) (87 percent),

Intel (NASDAQ:INTC) (84 percent),

Applied Materials (NASDAQ:AMAT) (84 percent),

AES Corp. (NYSE:AES) (81 percent),

Colgate Palmolive (NYSE:CL)(80 percent).

Just because their shares aren’t performing well right now doesn’t mean that all these companies will make smaller profits.But it does put pressure on margins, cash flow and the bottom line. In the above list, I still like Philip Morris. It’s done a good job of getting customers to trade up to its premium brands.

Source: The Curse of the Strong Dollar