In the video below Fool.com editor Austin Smith reacts to a recent Factset earnings report which outlines one huge trend that's creating headaches for blue chips: a slowing global economy.
Blue-chip stocks became a sought-after, safe haven for investor's money after the recession, which pushed share prices to above-average valuations. By nature of being enormous companies, most of these investments have had to set their sights on international markets for any meaningful growth, but that's a strategy suited better for another time.
Today, we're seeing weakness from Europe, a slowdown in China and other BRIC nations, and a strengthening dollar. While this creates an undeniable headwind for some of these mega-cap companies, if you take a big step back you'll see opportunity for the patient investor.
Austin Smith owns shares of General Electric Company and Intel. The Motley Fool owns shares of General Electric Company, Intel, and Microsoft. Motley Fool newsletter services recommend Intel and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.