In a recent Investment Contrarians article, financial expert George Leong reports that, last Tuesday, global networking giant Cisco Systems announced that it beat on revenues and earnings estimates in its 2013 fiscal first quarter. Leong notes that the company reported good performance from its Asia-Pacific and EMEA (Europe, the Middle East, and Africa) regions, suggesting that there is an excellent global opportunity for growth in the emerging markets, due to rising income levels and consumer spending.
Leong reports that the Asia-Pacific and EMEA regions now account for 41% of Cisco's total revenues. (Source: "Cisco Reports First Quarter Earnings," The Network, November 13, 2012.) He states that the results demonstrate the growing importance of the non-U.S. markets to Cisco among other multinational companies.
"Take a look at the recent results from global credit card provider MasterCard," says Leong. "...MasterCard is a good global barometer on consumer spending, as the company has a presence in over 210 countries. In a third-quarter press release, MasterCard reported that its worldwide purchase volume surged 12% in the third quarter on a local currency basis." (Source: "MasterCard Incorporated Reports Third-Quarter 2012 Financial Results," Yahoo! Finance via BusinessWire, October 31, 2012.)
Leong concludes that MasterCard clearly sees new markets in these growth regions where the per capita income is rising, helping to drive consumer spending and economic growth.
In the case of Cisco and other multinational companies, Leong notes that China and India will be the explosive areas for consumer spending, given that over one-third of the world's population lives in these two countries, and both have been driving to improve standards.
He also points out that wealth levels in Hong Kong, Singapore, South Korea, and Taiwan are extremely high, meaning that these are key consumer spending growth areas.
Leong concludes by suggesting that Latin America is also hot for consumer spending, as its gross domestic product (GDP) growth is expected to rally to 4.1% in 2013. (Source: International Monetary Fund, last accessed November 14, 2012.) According to the Investment Contrarians expert, the key player in Latin America is Brazil, which will spend heavily as it gets ready for the World Cup in 2014, followed by the Olympics in 2016.
To see the full article, and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the "herd mentality."
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The "official" unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the "official" inflation numbers are also not reflective of today's reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter's parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, "A Problem 23 Times Bigger Than Greece," a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece's economy! To see the video, visit http://www.investmentcontrarians.com/press.
Read the full story at http://www.prweb.com/releases/2012/11/prweb10142429.htm