CHART OF THE DAY: S&P 500 Investors Don't Need To Freak Out About An Emerging Market Meltdown

The S&P 500 is a great index for U.S. investors because its constituents offer some great international exposure.

But in recent weeks, there has been some concerns arising in the emerging markets.  With interest rates on the rise, investors have been yanking out their funds from the EMs at a breakneck pace.

Earlier today, we got more evidence that China was slowing as interest rates rise in the region.

So where does that leave investors exposed to the S&P 500?

Goldman Sachs' David Kostin doesn't think you need to be too worried.

"We believe weaker EM growth poses little risk to S&P 500 earnings," he wrote in a new note to clients. "We estimate roughly 5% of S&P 500 revenues are derived from EM, and BEA data suggest a similar EM share of total US corporate profits. Two-thirds of S&P 500 sales are domestic, making our forecast for stronger US GDP the biggest driver of our EPS growth forecasts of 11% and 8% in 2013 and 2014."

Kostin is one of the most bullish strategists on Wall Street, forecast the S&P 500 to hit 1,750 by the end of the year.

Goldman Sachs

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