Kass: Look Within
Besides superior earnings prospects, an important reason is that both companies generate almost all of their sales in the U.S.
My friend/buddy/pal BTIG's Dan Greenhaus had a wonderful chart in his missive on Tuesday evening that highlighted the strength of company share prices that are domestic-based and are insulated from the sovereign debt crisis in Europe (compared to the S&P 500).
As I have previously written, sharp and growing differences in geographical growth are now emerging.
Europe's economies are moving in reverse. There is a sense of hopelessness.
By contrast, the U.S. economy is expanding at a modest but steady pace. In the U.S., there is hope.
Moreover, the flight to safety around the world is paying short- and long-lasting dividends for the U.S. in the form of much lower interest rates. The beneficiaries are U.S. consumers and corporations, both of which have locked in these low interest rates in the guise of mortgage loans and corporate borrowings.
The events over the past few years have highlighted the likelihood that the U.S. stock market (the best house in a bad neighborhood) will be favored over most other investment markets in the world.
Here, again, are my 10 reasons why I remain optimistic about the investment opportunities in the U.S.:
- Above all (and as cited above), our country's relative and absolute economic growth is superior to global growth. The U.S. economy, though sluggish in recovery relative to past expansions, is superior to most of the world's economies (with the exception of some emerging markets) in terms of diversity of end markets, quality of global franchises, management expertise, operating execution and financial foundations.