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From a business perspective, staying at home rather than expanding abroad looks like a pretty...

From a business perspective, staying at home rather than expanding abroad looks like a pretty good strategy. At present, 150 of the 500 companies in the S&P 500 make 95% to 100% percent of their revenue inside U.S. borders. In addition, these "sold in the USA" stocks have a forward 12-month earnings growth forecast of 9.9%, above the S&P 500's 9.3%, and on average are outperforming the S&P 500 benchmark on a 12-month and 24-month basis.
Comments (7)
  • This is an age old wisdom.

     

    Thanks for the %ages! But my Cn company shares based in HK, NY with minimal investment is equivalent to the USA shares invested at 50x capital.

     

    It's all luck of the draw!
    10 May 2013, 08:22 PM Reply Like
  • Hong Kong you have to pay the triad off.
    12 May 2013, 01:07 PM Reply Like
  • Just for the purposes of discussion, one has to consider several factors before deciding if those stats make sense. For instance, we know that most US companies with truly multinational operations have a significant business with Europe, which is among the hardest hit with financial uncertainty and - well... - despair. Unemployment is north of 25% in Spain, governments throughout the region have reduced spending. Ireland, Portugal, Greece... it seems like a merry-go-round of who is next in line to be in trouble.

     

    Though we would not seem to find it plausible from the political debates on the subject, the US domestically has been doing fairly great. Our consumers aren't quick but not dead, we've found loads of oil and gas, employment and exports are improving - even though not at a pace we'd prefer. Capital costs are stunningly low for established businesses.

     

    Lastly, some US businesses just don't translate well beyond our borders. WalMart does. Bed Bath & Beyond is nearly all domestic with a small nod north and south. IBM, selling generally to the largest companies and government agencies, has to look far beyond US borders to reach its potential market. For many smaller firms, the domestic market is large enough or the complications/risks of international business simply outweigh the potential reward.
    11 May 2013, 10:08 AM Reply Like
  • the only reason is all that money from the fed and from the defecit of 2T a year. 2 trillion dollars can buy a lot of stuff and that is why the sold in the USA is working slightly better than the average. Just imagine what would happen if that 2 trillion dollars are reduced to even 1 trillion dollars.
    11 May 2013, 10:19 AM Reply Like
  • So the supportive fiscal and monetary policies to avoid most of the great recession were, as some suggest, useless grandstanding? Let me check these corporate profits again, were they really so dismal?
    11 May 2013, 11:54 AM Reply Like
  • "95% to 100% percent of their revenue inside U.S. borders."

     

    That seems because the value added from abroad is so low, or costs minimally.
    11 May 2013, 09:43 PM Reply Like
  • Cheap energy, good instructure, access to ports, States give you tax breaks.
    12 May 2013, 01:06 PM Reply Like
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