One of the major themes of our coverage is how emerging markets are becoming central for U.S. companies. video and get a few of our favorite tickers here.
Many U.S. household brands are already huge players in the emerging world. Others are rapidly realizing that they need to get into places like China and India if they want to stay relevant over the long term . . . or even just find growth in the next quarter or next year. For example, Pepsi PEP is indeed an established U.S. franchise, but does 40% of its business overseas.
PEP is investing $2.5 billion in China over the next three years to beef up its manufacturing presence, and is committing a similarly large sum to build out in India. Significantly, all that money is cheaper for the company than the cost of growing its market share in the developed world. Marketing costs were a key factor in PEP's recent earnings warning, and other companies that are in the same boat are likely to make a similar bet on wooing emerging customers instead.
Another name to keep in mind is Ford F.
Although F is no General Motors when it comes to huge share in the emerging markets, the sad fact is that you cannot trade GM right now. In the meantime, this is the best U.S. way to trade the global car story -- which again, is thundering along in emerging markets even though sales in Western Europe and here at home are flat at best. In the auto manufacturers space, Tim Seymour likes Ford Motor because it's making "significant" ground in Latin America and has a "big presence" in Europe.