6/30/16

FEATURED: What Is Brexit? How Does Annex Wealth Management Manage Events That Cause Volatility?

Here’s an overview of the economic issues surrounding Brexit, and what this historic decision could mean for the United Kingdom, world trade and international investors.  READ HERE. 

AXIOM + GRAPHIC = AXIOMAPHIC OF THE WEEK:

Historically, Small & Mid-Cap Companies
Have Had Higher Domestic Sales

The U.S. consumer has been the engine powering U.S. economic growth, as consumption spending accounts for nearly two-thirds of U.S. GDP. Since the U.S. economy is uniquely dependent on internal consumption, it is less export-dependent than other nations, with total U.S. exports accounting for only 13% of U.S. GDP. Comparatively, China’s export sector makes up 23% of its economic output, while Germany’s comprises around 46%, according to World Bank data.

In light of economic uncertainty stemming from Brexit, how might equity investors benefit from this trend? They may wish to consider the companies that might be most closely linked to the strength of the U.S. consumer. As Chart 2 shows, small- and mid-cap companies tend to be more domestically focused. Based on data from FactSet, small-cap companies derived nearly 75% of their revenue from the United States, based on fiscal year 2015 revenue estimates, while mid-cap companies garnered around 68%.

Source: Lord Abbett, FactSet. Domestic sales as a percentage of total geographic sales. Segments are collected as reported by each company in its respective index. If a company reports by region instead of country, the total domestic sales percentage is based on the home country’s or country of domicile’s region. For illustrative purposes only. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. Forecasts and projections are based on current market conditions and are subject to change without notice. Projections should not be considered a guarantee.

From The Annex Wealth Management BLOG:

Annex Wealth Management has been named one of the nation’s top Registered Investment Advisors – again. READ HERE.

BEST OF OUR RADIO PROGRAMS:

Every week, Annex Wealth Management hosts two radio programs that inform and educate listeners. Here are some highlights from those programs.

Money Talk 1 – What Is Brexit? Why Does It Matter To Me?

Money Talk 2 – What Is Brexit? Why Does It Matter To Me?

 Continued – Annex Wealth Management’s Dave Spano and Mark Oswald on Brexit.

Watch it: ANNEX TV:

Annex Wealth Management’s Deanne Phillips
What Is Brexit? How Does Annex Wealth Management Manage Events That Cause Volatility?