Foreign Growth Hits Home
A record number of foreign countries are expected to generate economic growth in 2017, which may contribute strong earnings growth to U.S. companies and provide additional support to the ongoing bull market.

  • The In​ternational Monetary Fund predicts a record number of countries will experience GDP growth in 2017 (184 out of 197), an unprecedented number since at least 1980.

  • Global growth is a powerful tailwind for many U.S. companies, with 30% of the sales from companies in the S&P 500 coming from outside of the U.S.

  • In Q317 U.S. companies that garner more than half of their sales in foreign countries produced year-over-year earnings growth of more than 13%, according to FactSet, compared to under 3% for companies with less than half of their sales abroad.

  • Information Technology (IT) companies earn more than half of their sales from foreign buyers. At Alger, we believe IT is among the most likely sectors to benefit from global growth.

The views expressed are the views of Fred Alger Management, Inc. as of December 2​017. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

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