The Wide World Of The S&P

Just because most Standard & Poor's 500 companies are U.S.-based, don't expect your S&P fund to insulate you from swings in the global economy. "If you invest in the S&P, you own a diversified global portfolio," says Morgan Stanley Dean Witter analyst Deborah Weinswig. She studied 329 companies that make up 77% of the S&P's market cap. About 23% of their revenues are outside North America. Asia accounts for 7% of sales, something to watch as turmoil sweeps the region. Fortunately, S&P members garner 13% of sales in Europe, where the economy is booming.

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