John Canally, CFA and Economist at LPL Financial recently put out a paper that takes a nice look at U.S. exports and our trading partners. Here’s a part; let me know if you want the full report.
It’s a good read,
“Fourteen percent of our exports (both goods and services) are bound for the Eurozone, while just 6% head to China. Remarkably, only 5% of our exports go to Japan. Combined, our exports to the Eurozone, Japan and China account for 25% of our total exports.
Closer to home, 16% of our exports head north of the border to Canada, and another 11% head south of the border to Mexico. Thus, our exports to our two closest neighbors (27% of all exports) are larger than our exports to the Eurozone, China and Japan combined (25%). Accordingly, market participants should probably pay more attention to the economic prospects of Canada and Mexico and a bit less to the prospects of China, the Eurozone and Japan.”
Canada and Mexico
Please remember that international investing involves special risks, such as currency fluctuation and political instability and is not suitable for all investors. Economic data reported above does not provide any assurance of positive investment performance.
These are opinions so be sure to call to discuss your overall strategy.
Until next week,
Susan R. Linkous