The average stock in the S&P 500 is down more than 6.5% since the April 2nd market peak. We ran our decile analysis on the index focusing on international revenues to see how much Europe and other parts of the world are impacting US stocks. To run the analysis, we broke the index into deciles (10 groups of 50 stocks each) based on the percentage of revenues that each index member generates outside of the US, and then we calculated the average change since 4/2 of the stocks in each decile.
As shown below, the decile of S&P 500 stocks that generate the largest portion of their revenues from outside the US are down an average of 11.1% since the April 2nd top, while the stocks that generate all of their revenues domestically are down an average of just 3.7%. If Europe's problems continue, this trend should continue, although we're probably due for some sort of reversion to the mean since the divergence is so wide.
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