Perhaps a Safer Way to Play Emerging Markets

By on November 30, 2010

Daniel Fisher has written an article for Forbes highlighting several domestic stocks with large international sales exposure.  Fisher indicates that investing in U. S. based stocks is probably safer than going overseas.

Forget about buying shares in emerging markets companies and rolling the dice on their murky accounting and governance standards. Instead, consider tapping into the wealth being created abroad via big U.S. stocks like Yum (market cap: $24 billion), 3M ($62 billion) and Cummins ($19 billion).

Fisher highlights companies with large foreign sales exposure in the following chart:

SMA Comment: Fisher’s idea is nothing new, but it’s always useful to consider stocks with large international sales for diversification benefits.

Source: Forbes

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