Weak Dollar Stock #2 – Caterpillar (CAT)
Nothing says manufacturing like Caterpillar (CAT). Those monster trucks made for earth-moving, digging and trucking are the epitome of making stuff in the good old USA. Emerging markets are gaining confidence in building again, and a declining dollar makes CAT equipment cheap for them.
Look for big sales gains in CAT as the dollar drops. I expect CAT stock to explode above $100 per share as a result of the weak dollar. My target is $120, but this stock could go to $150 simply on the strength of exports. Dollar weakness has yet to be priced into this stock. I would buy it before the rest of the market figures out what is happening here. Buffett buying BNI is a big clue that investors should hone in on.
Article printed from InvestorPlace Media, http://investorplace.com/2009/11/weak-dollar-stocks/.
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