3 Trades to Play a Stronger U.S. Dollar

Fed tapering has the greenback going up, and that makes these bets look good

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3 Trades to Play a Stronger U.S. Dollar

Honda (HMC) and Toyota (TM)

Honda 3 Trades to Play a Stronger U.S. DollarThe Fed is easing up on its bond-buying program at the same time as Japan is working to weaken the yen. The Bank of Japan is desperately trying to break a decades-long pattern of deflation, as well as boost exports.

So far it’s working. The yen fell about 14% against the U.S. dollar during the past year — great news for Japanese car manufacturers like Honda (HMC) and Toyota (TM). Honda saw profits jump 46% in the most recent quarter, thanks to surging sales in the U.S. Meanwhile, Toyota said its most recent quarterly profits surged 70%, driven by U.S sales.

Toyota and Honda stock are the best plays in the industry for U.S. investors because they’re the only Japanese automakers that trade on a major exchange here (NYSE).


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/strong-us-dollar-stocks/.

©2014 InvestorPlace Media, LLC

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