Saturday, September 16, 2017

The Customers Live Elsewhere!

While we strive to maintain our focus herein on all things market and economic, every now and again we'll risk touching subscribers'/clients' nerves on topics that we believe impact/relate to markets and economics, but nonetheless spark ideologically-inspired rebuttals, if not rebukes (we're talking politics of course).

Well, on the topic of trade, we're willing to take the risk. In that we believe passionately that ever-freer trade (even unilateral) is far and away in the best interests (be they economic or national security) of us Americans.

As you may know, we maintain extensive ongoing records of the economic happenings the world over. This morning's headline below speaks to a good thing (doesn't hurt us when China and Australia come together on trade) and a potentially very bad thing, in our view (knowing our position, you'll gather what I mean from the headline):
Australia, China Seek to Boost Economic Ties as U.S. Pulls Back (Bloomberg) -- Australian and Chinese officials held talks in Beijing. The two nations worked across “a whole range of issues, starting off first and foremost with our combined commitments to grow our economies but also resisting against protectionism” 
You and I live in a country that represents merely 4% of the world's population. By some miracle, us Americans wield the world's largest economy by a wide margin. Make no mistake, our leadership in global trade is a huge, if not the hugest, reason we are where we are. 

Think of it this way, the largest company on the planet (Apple [a major component of your portfolio's tech exposure]) happens to be domiciled in the U.S., while 96% of its potential customers live outside U.S. borders. It's critical to Apple's success that America maintain growing, positive, mutually beneficial relationships with the countries that house the world's customers.

Oh, and same goes for the following:

Note: We deleted dozens (and dozens) of names between Qualcomm and Apple to save space:


Royal Gold 98.2
Skyworks Solutions 98.1
Marvell Technology Group 97.8
Air Lease 95.1
Universal Display 94
Newmont Mining 93.7
Lam Research 91.6
Jabil Circuit 90.7
Cypress Semiconductor 89.6
Applied Materials 89.4
Nu Skin Enterprises 87.5
Texas Instruments 87.4
Manpowergroup 85.6
ON Semiconductor 84.9
Coca-Cola 84.6
Micron Technology 84.5
Priceline Group 84.4
KLA-Tencor 82.5
Las Vegas Sands 81.9
Microchip Technology 81.2
Southern Copper 80.5
Platform Specialty Products 79.8
Colgate-Palmolive 79.1
Intel 78.2
Schlumberger 75.8
AGCO 75.6
BorgWarner 75.4
International Flavors & Fragrances 75.3
Tupperware Brands 75.2
AmTrust Financial Services 74.9
FMC 74.5
Mondelez International 73.2
National Oilwell Varco 73
Aflac 72.3
WR Grace 72.1
Corning 72
Wynn Resorts 72
Copa Holdings SA 71.2
Nabors Industries 71.1
Nordson 70.6
Albemarle 70.2
Western Union 69.2
Xilinx 68.6
Cognex 68.4
Mettler-Toledo International 67.5
Cavium 67.4
Mead Johnson Nutrition 66.8
Baker Hughes 66.7
McDonald's 66.5
Owens-Illinois 66.5
Diamond Offshore Drilling 65.8
Dow Chemical 65.5
Delphi Automotive 63.8
Abbott Laboratories 63.3
DENTSPLY International 63.1
Ingredion 62.9
Apache 62.8
Exxon Mobil 62.8
Bio-Rad Laboratories 62.7
Mosaic 62.6
Hewlett-Packard 62.6
ITT 62.6
Danaher 62.2
MasterCard 62
Murphy Oil 62
NXP Semiconductors 61.8
Hasbro 61.5
Air Products & Chemicals 60.2
Avnet 60.2
Freeport-McMoRan  60.2
Apple 60

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