Investing in U.S. Stock Market

U.S. Market Overview

The world’s largest economy

As the world’s largest economy, the United States is home to the biggest stock exchanges in terms of the number of listed companies and market capitalisation. 

The New York Stock Exchange (NYSE) and the NASDAQ are the two main stock exchanges, which are bellwethers for markets around the world.

For investors looking to diversify their portfolio, the US stock markets can provide a wide range of industries – financials, healthcare, information technology, energy, telecommunication services, consumer discretionary and consumer staples – to choose from.

The US remains the most coveted market for companies seeking public listing due to the massive amount of investor interest and activity in the country.

Diversify your portfolio

Whether you are looking for fast-moving and rapid-rising technology companies or steady-growth players, the US markets have a deep pool of companies and industries that can enhance your investment portfolio.

Home to some of the world’s largest companies such as technology giants including Facebook, Google, Amazon, Apple and Microsoft, the US stock markets provide investment opportunities not found in other markets. 

Even if you only invest in a handful of sectors or a select number of US companies, they can provide the needed diversification in your portfolio.

Access deep liquidity

The fact that the US hosts many of the world’s largest companies also means their stock markets have deep liquidity, which means there are constant opportunities to invest in a wide range of industries.

With the massive amount of inventions – new products, technologies and services – generated in the US, its markets attract a constant flow of investment money from across the globe.

Trading the US markets, you will also have access to Exchange Traded Funds (ETFs) and American Depositary Receipts (ADRs) which may not be available in your home country markets.

Leading companies and investment opportunities in the US

Here are some of the leading US companies you can invest in:

•  Information Technology – Facebook, Google, Apple, Microsoft

•  Healthcare – Johnson & Johnson, Pfizer, Merck & Co

•  Financials - Berkshire Hathaway, JPMorgan Chase, Bank of America, Citigroup

•  Consumer Staples – Wal-Mart, Procter & Gamble, Coca-Cola

•  Consumer Discretionary – Home Depot, ComCast, Walt Disney, McDonald’s

Investing in U.S. stock markets

While investing in US stocks is an attractive proposition for those wanting to diversify their portfolio, access to the US stock markets may not be that easy, particularly if you are a non-US resident. However, with the advent of the internet and online trading platforms, you can now easily buy and sell US shares if your stock broker offers this service.

Why invest in U.S. stock market?

•  Biggest stock market in the world

•  Deep market liquidity and trading volume

•  Great diversification - offers a huge variety of companies and ADRs

•  World's largest number of ETFs - over 1,400

•  Free from capital gains taxes (only apply to non-U.S. persons)

•  Strict and effective laws and regulations

To invest in the US Stock Exchanges, you can use the Monex Securities Australia multi-market platform. This easy to use platform gives you access to more than 50,000 listed securities in 12 global markets including the US, Japan, China, Hong Kong, Australia, Singapore, Taiwan, South Korea, Malaysia, Thailand, Indonesia and the Philippines.