How I’m Playing the Dollar’s 10% Drop

By Karim Rahemtulla

February 12, 2026

The stated goal of the U.S. government is to weaken the U.S. dollar in order to boost exports.

It’s not a bad policy. I saw firsthand on my recent trip to Europe, where everything cost about 10% more than it did last year.

This also tracks the move in the dollar, which is down 10% versus the euro and British pound.

For a few of our holdings, like Rolls Royce (RYCEY), this has meant an automatic 10% boost in U.S. dollar share prices since the shares are denominated in pounds.

But there’s another angle to the dollar weakness…

The Crocs Play

Today in The War Room, I recommended members jump into CROX using a spread I engineered.

Ugly is back in style – not necessarily here in the U.S., but overseas.

Here’s what CROX reported on its latest earnings call…

North America revenues decreased 7.4% to $436 million
International revenues increased 14.1% to $332 million (11.0% on a constant currency basis)

This is a powerful signal. U.S. dollar weakness is driving international sales higher, along with the fashion trend favoring their products.

I expect this dynamic to strengthen this year and into next year.

Why? The U.S. is embarking on a weak dollar/low interest rate policy. The newly nominated Fed Chairman is widely expected to pursue lower rates, working in tandem with a Treasury Secretary who wants a weaker dollar.

With the dollar weakening, you should focus part of your portfolio on companies that sell a lot overseas.

Those companies include…