- Personal Finance
Global returns from US stocks
Are you hearing the siren call of the Chinese economic juggernaut or do you want
to run with the hard charging Indian bull? But too lazy to
do the due diligence and investigate all those foreign corporations with
exotic, unfamiliar names. In this hub I'll show you a play that gives you the growth of global markets with the safety of US stocks.
The projected global growth rates for 2011 are a fat 8.3% for India and 9.6% for China. Compare that to a skinny US rate of 2.6%. But how many investors want to wade through tens of thousands of stocks and mutual funds sold on exchanges in those distant places.
There's a better way.
Did you know that Coke earns over 70% of it's revenue overseas, KFC (Kentucky Fried Chicken) earns 30% of it's revenue from China alone. Colgate-Palmolive ties with Macdonalds both earning 50% of their revenue from their global operations.
The secret sauce is to concentrate your investing on US or Canadian companies that have large global operations. A further benefit is corporations of this scale often pay good dividends as well. By investing in large US/Canadian corporation with a global presence you can get a double whammy - potential for growth plus a stable annual dividend.