Tuesday, May 8, 2007

International Exposure

Stocks are trading lower today on relatively light volume. I think some people are taking profits, which explains the drop, but most people are in "wait and see" mode. I think the Fed is going to have to address inflation issues. I think that it is a factor that has been underestimated in the past year.

The Berkshire Hathaway meeting occurred over the weekend. I'm always interested in what Warren Buffett has to say about the market. His candor is very refreshing compared to the usual Wall Street jargon that we usually hear. I agree with his comments about getting international exposure. He said that the weakness in the dollar is a problem, but rather than trading the currency, he said to buy stocks with international exposure. He also said that Berkshire is going to make some major purchases in the next year, and those would most likely have some exposure to new markets.

Some US companies with big international exposure: Coca Cola (KO), General Electric (GE), AIG (AIG), Noble (NE).

Some international companies that I like: Cemex (CX), CNOOC (CEO), BHP Billiton (BHP).

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