I've suggested here lately that if we see a pick up in global economic growth the second half of the year, stocks, by conventional valuation metrics, don't look pricey at present levels... The operative word being "global"...
Some 40% of the earnings of the companies making up the S&P 500 Stock Index come from foreign customers...
Think about that the next time you hear someone carp over foreign trade... or a politician pander to a back-scratching lobbyist's plea for a favor (GW Bush tariffed Japanese steel, BH Obama tariffed Chinese tires.... Very Very Bad Policy - I assure you!!...)
Clearly, without the rest of the world so desperate for U.S. dollars, with which to buy U.S. goods (not to mention U.S. treasuries) we'd be in an even worse pickle...
The outside world is indeed growing more industrious by the second... We have so much to offer... and thus so much to profit from in the years ahead.... provided we get our fiscal house in order...
Stay tuned...
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