No doubt many investors are scratching their heads
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Posted On: 05/02/2017 1:33:26 PM
No doubt many investors are scratching their heads. How can this be the best earnings season in two years while at the same time Q1 GDP was a paltry +0.7%???
I know...it makes no sense on the surface. So, let me pull back the curtain and put it into proper perspective.
The world economy is rebounding. Especially in Europe, Japan and parts of South America. Even China is showing more pep in its step. Thus, with over 40% of the earnings for S&P 500 companies coming from outside the US, this increased global growth is making up for the shortfall in the states.
This is another way of saying that investors should check their portfolio allocations and make sure it is not too US centric. Yes, that was a good strategy back in 2015 and 2016 when international prospects were diminished. Now that chapter is over and it's time to increase global exposure.
I know...it makes no sense on the surface. So, let me pull back the curtain and put it into proper perspective.
The world economy is rebounding. Especially in Europe, Japan and parts of South America. Even China is showing more pep in its step. Thus, with over 40% of the earnings for S&P 500 companies coming from outside the US, this increased global growth is making up for the shortfall in the states.
This is another way of saying that investors should check their portfolio allocations and make sure it is not too US centric. Yes, that was a good strategy back in 2015 and 2016 when international prospects were diminished. Now that chapter is over and it's time to increase global exposure.
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