Strong Dollar Wreaks Havoc On Share Markets, But May Provide Some Investment Opportunities

On Tuesday, the both the Dow Jones and the S&P 500 lost nearly 2 percent, mitigating almost all gains made thus far in 2015. The sharp decline was based largely on investor fears as the dollar's strength rose and the US Federal Reserve hinted at a sooner-than-expected rate increase. The rising dollar has been a worry for investors as it hurts US firms that sell products abroad and makes Americans more likely to buy from foreign competitors. However, optimistic investors are looking at the strong dollar as an opportunity and using this tumultuous time find some cheap deals.

Companies that buy goods overseas will benefit from a stronger dollar as their margins will fall significantly. Discount stores and supermarkets are great examples of firms whose purchasing power overseas rises with the strength of the greenback.

is one such company, and the fact that all of its operations are within the US means the company will be protected from losing out on international sales. Tech businesses that import the components of their products are also in a favorable position;

is one such business who's share price has risen 7.04 percent in the past month alongside the dollar. Additionally, automakers that are losing money on sales in foreign currencies may not suffer as much as markets perceive. Domestic companies like

or

will also find the materials needed to manufacture automobiles like steel and copper much cheaper to purchase.

While the Federal Reserve's rate rise is dreaded by most investors, its important to note that higher interest rates aren't all bad for US businesses. Investment banks like

and

will be able to collect money market management fees that were previously waived in order to cope with low interest rates.