Why should a business investor choose to invest in the US stock market? How to invest in US stocks? Should you invest in the USA, or should you try to see the potential of the other Asian market too? We answer these questions in this article with deep research and analysis.
Some of them vastly prefer investing in the US stock market, while fewer choose other stocks. However, it’s high time to end this confusion and look into a thorough and detailed perspective. Investors should keep the following given points in mind, which will help them choose the most suitable platform.
Paul Haarman has provided some critical points depending upon the factors like the amount to be Invested, time of investment, and the willingness to take a calculated risk. He compared the benefits, which an investor may get from investing in the United States.
The Benefits of Investing Funds in the US Stock Market
1. Bunch of Famous Companies: Huge companies like Facebook, Google, Nike, Apple, Amazon, etc., have a US origin. So, by investing in such trusted and branded companies, you will get a share of their growth.
2. Striking Interest Rates from Bank: The investor invests his funds in any bank situated in America. He generally extracts high interest rates from a bank which can be up to 8% depending on various terms and conditions. Whereas, in the other markets, the interest rates provided by the banks are much lower.
3. Mature Economy Investment: If you have a plan to live in America investing in US stock and funds will be very beneficial for you. You are participating in a mature economy, and for that, you will get interest in dollars as a reward.
4. Policies Regulating the Market: US investment market is clear and considerate with its regulations. It most suitably aids US citizens in understanding the conditions. Whereas in the other markets, you are more likely to be cured by the regulatory measures. That’s a great thing about the US Stock Market.
5. Geographical Diversification: The USA has ten times more GDP in comparison with other markets. US-based companies have approximately 35%-40% of the world’s total market capitalization.
6. Affluence in Liquidity: Liquidation of funds generally depends on the type of investment you prefer. In American stock markets, it is much easier to liquidate your money whenever you are in need.
7. Growth Possibility: Growth in America has always been high. But it does not mean that the market might not develop further. Investment in the American market still has a scope for a lot of growth. It can be a deciding factor for the investors to choose between an established or emerging market, and we suggest you opt for an already established one.
As per the opinion of Paul Haarman, the value of US dollars rarely fluctuates and has always been higher than the value of many other currencies. Thus, investing in the US stock market can be more beneficial for the investors preferring a good life in the USA.
Feel free to share your thoughts about investing in the US Stock Market below.
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