Foreign Revenue Equals Stock Outperformance

S&P 500 companies who generate 50% or more of their sales abroad have outperformed the broader S&p 500 index ever since the U.S. dollar started to weaken in March. Their outlook is likely better in two ways, firstly due to foreign currency income being translated into more U.S. dollar profit, and secondly due to the fact that many economies, particularly in the emerging markets space appear to have substantially better growth prospects than the U.S. domestic economy right now. (Bloomberg chart via Paul Kedrosky)


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