How To Play Global Growth
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Created by mock portfolio
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Date updated:05-20-2007

Durable goods (ex: computers, TV's) are typically considered luxuries. Thus, durable goods experience faster growth than do nondurable goods given a rise in income (evidence: between the 3rd quarter of 1960 and the 4th quarter in 2001, spending on durable goods as a % of consumption increased from 6.9% to 15.6%. In comparison, spending on nondurable goods over the same time period fell from 40.5% of consumption to 29%). Being that globalization and capital mobility will likely lead to rising global wealth over time, this should then be bullish for durable goods.

To best take advantage of this very long-term, slowly evolving trend, it appears that you must maintain a position in durable goods. Also, make sure to purchase companies highly levered to global (ex-U.S.) growth.

symbol name last price % change open
  • +
  • TTM
    Tata Motors Inc
  • $12.67
  • +4.28%
  • $12.44

You want global (ex U.S.) growth? TTM is based in India. Works for me...

People owning TTM also tend to own: ASEICMGLENTKOVLOGMEINTC

TheStreet.com Rating: C What is this?

  • +
  • TM
    Toyota Mtr Cp Ads
  • $79.12
  • +1.23%
  • $77.70

Another global company. Should have long-term longevity, thanks to good management and brand name.

People owning TM also tend to own: AXAFDXNOKNUERTPSLBAAPL

TheStreet.com Rating: C What is this?

  • +
  • HMC
    Honda Motor Co Ad
  • $32.00
  • +2.70%
  • $31.43

See "TM" above.

People owning HMC also tend to own: GOOGLVLTMOPNFPABFSBGERJ

TheStreet.com Rating: C What is this?

  • +
  • WHR
    Whirlpool Cp
  • $73.54
  • +3.84%
  • $71.82

Levered to Latin American growth. Along with GE, one of the two major players in the home appliance sector.

People owning WHR also tend to own: AUYBPCSEKEYLMTLUNAPEG

TheStreet.com Rating: C+ What is this?

  • +
  • GLW
    Corning Inc
  • $15.80
  • +3.27%
  • $15.35

Levered to TV's, among other things.

People owning GLW also tend to own: ADTNALGNAMLNBEASCCMPCKFRCRL

TheStreet.com Rating: C+ What is this?

  • +
  • LPL
    Lg Display Co Ltd
  • $12.87
  • 0.00%
  • $N/A

Levered to TV's, among other things.

People owning LPL also tend to own: AIGCAKECBGCHTCSCEDDFTE

TheStreet.com Rating: C What is this?

  • +
  • HPQ
    Hewlett Packard C
  • $49.99
  • +1.69%
  • $49.07

Computer company highly levered to global (ex-U.S. growth).

People owning HPQ also tend to own: ACASCLPMRKPHISHFLVZAA

TheStreet.com Rating: B What is this?

  • +
  • QCOM
    Qualcomm Incorpor
  • $44.75
  • +1.94%
  • $44.15

Cell phones are also durable goods. QCOM is obviously levered to cell phones, so...

People owning QCOM also tend to own: AAAAPLADBEBAMDVYGEHON

TheStreet.com Rating: B- What is this?

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