Domestic Growth Abroad

It's been one of the best periods for US corporate earnings since World War II.

It's been one of the best periods for US corporate earnings since World War II. But don't give the US consumer or even the US economy all the credit. One of the ways domestic companies are keeping the streak going is by tapping into global growth.

Many of the companies in the S&P 500 are bona fide multinationals, getting a good deal of their growth from foreign nations. But don't give the developed world all the credit—much of that new growth will come from emerging markets, a.k.a. developing countries.

GE, one of the world's largest companies, is at the forefront of capturing this growth. Here's a headline and a few highlights from today's Top Stories from Bloomberg:

GE Says Revenue From Developing Countries Will Gain 15 Percent This Year:
"General Electric said revenue from developing countries will increase by about 15 percent this year, buoyed by demand in India and the Middle East. Sales from emerging markets will reach $27 billion, led by spending on the development of infrastructure ranging from airports and roads to water-treatment plants and hospitals, Vice Chairman John Rice said today at an investor meeting in Italy…Chief Executive Officer Jeffrey Immelt aims to get about half GE's revenue from outside the U.S. this year, up from 40 percent in 2002…The Fairfield, Connecticut- based company increasingly packages equipment, services and financing contracts to help capture sales in emerging nations."

Today, a global view of the economy trumps the local view. This is true for corporate development and building an appropriate investment philosophy. Increasingly, we must understand the global consumer and the global producer to make an accurate assessment. It's no longer good enough to just worry about the country you live in. A look into the robust growth in US corporate earnings shows us as much.

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*The content contained in this article represents only the opinions and viewpoints of the Fisher Investments editorial staff.