What to do with $50,000 now
Given the uncertain economic picture, you probably have a chunk of change squirreled away. Here's how to best use that cash.
Be a bear
Buy U.S. multinationals that can profit from faster-growing economies overseas, advises Mark Freeman, co-manager of WHG Large Cap Value. These blue chips get 45% or more of their sales abroad and have had an earnings-per-share growth rate higher than their sector average over the past three years.
Abbott
% of revenue from overseas: 54%
EPS growth: 48.8%
YTD return: -1.1%
5-year annualized return: 6.7%
Cisco
% of revenue from overseas: 47%
EPS growth: 4.4%
YTD return: -7.6%M
5-year annualized return: 4.5%
IBM
% of revenue from overseas: 65%
EPS growth: 18.2%
YTD return: 4.3%M
5-year annualized return: 13%
Kimberly Clark
% of revenue from overseas: 45%
EPS growth: 11.6%
YTD return: 5.6%
5-year annualized return: 4.8%
NEXT: Be a bull
Last updated October 18 2010: 12:00 PM ET
Source: Bloomberg, Morningstar, company reports
Data as of Sept. 27. Est. growth rate is estimated five-year average growth rate, annualized. P/E ratio based on forecast for next 12 months' earnings. % of revenue from overseas as of 2009. EPS (earnings per share) growth is over the past three years, annualized.
Data as of Sept. 27. Est. growth rate is estimated five-year average growth rate, annualized. P/E ratio based on forecast for next 12 months' earnings. % of revenue from overseas as of 2009. EPS (earnings per share) growth is over the past three years, annualized.
