Buy American: 5 Stocks to Escape the Eurozone Crisis
BALTIMORE (Stockpickr) -- Something doesn't make sense here: U.S.-listed stocks have been more affected by Spanish yields this summer than they have been by their own financial performance. That should be reason enough for investors to flee from eurozone exposure. But there's a double whammy working against investors in 2012.
The other half is our own U.S. dollar, which has been on the rise as drama in Europe sends investors fleeing for the relative safety of the world's reserve currency. And as a result, any U.S. company that has exposure abroad is getting shellacked by earning revenues in euros, for instance, and then converting them into dollars later on for financial reporting purposes.
How bad is it?
>>5 Hated Stocks Set to Soar on Earnings
In the last quarter alone, the EUR/USD currency pair has fallen by 8.55%. That's enough of a drop to materially impact the sales of big U.S. companies that do a lot of business across the pond. Europe's bad. But don't think that it's the problem by itself. Companies with international exposure may have some attractive diversification attributes, but they're being overshadowed by the increased risks of international investing right now. More than a little of the volatility in the broad market here at home is coming from abroad right now -- so it makes sense to "buy American" in 2012. >>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now! To do that, we're taking a look at five stocks that have limited exposure outside of North America. That doesn't mean that it makes sense to eschew foreign exposure outright, but it does mean that any money earned overseas needs a second look before a stock can make this list.![]() |
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