According to FactSet, the escalation in tensions between the US and North Korea in recent weeks hasn’t hurt S&P500 companies with greater exposure to the region. The breakdown of companies with most exposure to the Asia/Pacific super-region shows they have well outperformed.
Average price change for S&P 500 stocks:
- Overall: -1.1%
- With at least 20% revenue exposure to AsiaPac: +0.5%
- With at least 40% revenue exposure to AsiaPac: +2.0%
Median price change:
- Overall: -0.3%
- ≥20% exposure to AsiaPac: +0.8%
- ≥40% exposure to AsiaPac: +1.3%
And Trump took us out of the TPP.