Low ''Bernanke-Beta'' Investing: Procter & Gamble and Raytheon

After ratcheting the Fed Funds rate down from 5.25% to 2.00% in lessthan a year, it seems abrupt to me how quickly the Fed's tone haschanged. Bernanke now wants to fight inflation, and Fed Funds futuresare actually predicting a 30% chance of an increase in rates at theAugust 5th meeting. So what does this mean to investors?

1)The U.S dollar may actually stop declining. Investors who have beenprofiting by betting against the U.S. dollar may need to find a newstrategy.

2) Commodity price increases may slow. Many investorshave been benefiting from the combination of a weak US dollar andgrowing international demand for commodities (e.g. energy andagricultural commodities). Taking the weak dollar out of the equationmay curb commodity price increases.

3) The risk profile changesfor certain international exposures. For example, as the dollar hassteadily decreased in value ag...