SG Guidebook: Why should we invest in US stocks? (Part 1)
Singapore and the US are two highly-developed countries with vibe economic opportunities on opposite sides of the globe. Singapore Airlines resumed the flight from SG to NY is the Longest Flight in the World:18 hours and 40 minutes.
Despite the 12 hour time difference, the money never sleeps, as tremendous investing opportunities are happening every second.
In this SG Guidebook series, moomoo will take you through the largest stock market in the world, by introducing "why should we invest in US stocks?" and "what to know before buying US stocks?".
You can get a better understanding of the US stock market. We hope you like them.
Why should we invest in US stocks?
1. Great long-term performance
The US stock market has a long-term better performance. Over the past 10 years, the $S&P 500 Index (.SPX.US)$ has a total return of 297.1%, and the $Nasdaq Composite Index (.IXIC.US)$ has a total return of 525.8%. In comparison, the $FTSE Singapore Straits Time Index (.STI.SG)$ has a total return of 14.8% in 10 years.
Image: moomoo
From top to bottom: Nasdaq Composite Index, S&P 500 Index, FTSE Singapore Strait Index
2. Industries with global advantages
Other than the major indices, the US stock market also has many industries dominating global sectors, generating more opportunities for investors to trade.
The S&P Global Broad Market tracks more than 11,000 stocks across 50 different markets, and the US-based companies have a overall heavy weighting in global sectors.
Image: VisualCapitalist
According to the data, US companies are especially competitive in Info Tech, Health care, and Communication services sectors, with the ratio higher than 60%.
3. World-renowned companies
Many companies listing on the Singapore stock market are well-known in Singapore or even in Asia, including $SGX (S68.SG)$, $DBS Group Holdings (D05.SG)$, $Singtel (Z74.SG)$ and $SIA (C6L.SG)$.
While in the US stock market, there are plenty of world-renowned companies with globally-recognized brands, such as $Apple (AAPL.US)$, $Meta Platforms (FB.US)$, $Adobe (ADBE.US)$, $Disney (DIS.US)$, $Tesla (TSLA.US)$, $Nike (NKE.US)$, $Hermes International SA (HESAY.US)$, $Starbucks (SBUX.US)$, $Electronic Arts Inc (EA.US)$, and $Sea (SE.US)$.
By investing in the US stock market, you can have the opportunity to participate in the global growth story.
Image: moomoo
From top to bottom: Adobe, Apple, Nike, Walt Disney
What's your thought on investing in US stocks? Do you have any investing experience to share with us?
Let us know if you have any ideas or questions. We can't wait to hear your valuable voices. Stay tuned for thepart 2: what to know before buying US stocks?
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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ProfitTogether : US stocks market is more vibrant than Sg.
mootastic : yeah
Walk the Snail : US is for growth, while SG is for passive income. depends on which cup of tea is ur favourite.
tlgy : Is the market inflated now ?
luciole8 : Do we get dividends from US Stocks in Singapore?
green x win : are both crashing now?
Moomoo SG OP green x win : The market is unpredictable in the short term my friend.
Moomoo SG OP luciole8 : Plz stay tuned for the Part 2
Moomoo SG OP tlgy : At least the PE ratios of US major indices are above average. For example, the average PE of S&P500 is 15.59, and for now it’s 34.95
makankaki : US market is so huge and so vibrant! Sg mkt is rather slow.
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