Companies Exposed To Asia Are Doing Even Worse Than Companies Exposed To Europe This Year

Investors have sold off shares of U.S. based companies that derive large parts of their revenue from foreign soil, new data from Business Insider shows. 

Since mid-May, companies that count all of their sales within the U.S. have seen shares increase more than 6.13 per cent, on average. 

However, firms that enjoyed strong foreign sales suffered, with those invested in Asia off 6.74 per cent and those in the eurozone down 4.09 per cent.

Business Insider constructed three custom indices based on a company’s revenue exposure to three geographic regions: Europe, the Asia-Pacific, and U.S.

The European and Asian Indices use the top 20 companies within the S&P 500 that generate the highest percentage of their sales from those areas. The U.S. index is based on 97 companies, which all generate 100 per cent of their revenues within U.S. borders.

Below, year-to-date performance for the three regions.

You can see how much better the green line (U.S.-only) is doing compared to the others.

YTD Geographic Equity Performance

Photo: Eric Platt/Business Insider, Data: Bloomberg

And now, a look at the key divergence that began in mid-May.

Equity Performance Geographic

Photo: Eric Platt/Business Insider, Data: Bloomberg

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