“It’s one of those stories that I’m perfectly happy to sit on the sidelines and observe. I would say there are better opportunities in the developed markets.” Bulls acknowledge the challenges but say the developing world has several factors going its way long-term. “Emerging markets have faster growth and the stocks are cheaper,” said Laura Geritz, manager of the Wasatch emerging-markets small cap fund. “Over the long run, you should have better returns in these markets.” Financial maturation has made developing nations much less vulnerable to the sort of crises that hobbled them in the 1980s and 1990s. And there’s little doubt they’ll continue to grow. A report last week by the McKinsey Global Institute, for example, projected that as many as 229 of the world’s 500 largest companies could be based in what stock to buy today emerging countries by 2025, up from 85 in 2010.
Lockheed and Raytheon each fell nearly 6%. All of these firms have huge federal contracts — between $8 and $36 billion in 2012, according to the Government Accountability Office. Richard Whittington, an aerospace analyst for Drexel Hamilton, noted that companies with military contracts are really getting pinched. On Friday afternoon, Lockheed Martin announced that 3,000 employees would be furloughed starting Monday. The company advised workers to use vacation benefits during the furlough, so they keep getting paid.
While remote, the possibility of the U.S. failing to pay its bills or creditors remains a deep concern to investors. “Credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse,” the Treasury Department said in a report Thursday. Investors went through a similar case of political brinkmanship in August 2011, which ultimately led to Standard & Poor’s downgrading the United States’ credit rating.
The 6 Most Popular Dow Stocks
AT&T’s roughly 60% total return is close to the Dow’s overall return since late 2008. Tech still commands respect Of the remaining four spots among the top six, tech stocks take all but one. Cisco Systems (NASDAQ: CSCO ) and Microsoft (NASDAQ: MSFT ) both have daily share volumes in the 33 million to 34 million range, while Intel (NASDAQ: INTC ) is well back at 22.6 million. Microsoft finishes well ahead of its two rivals in terms of dollar volume, as both Cisco and Intel have significantly lower share prices than Microsoft.
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