The myth and the truth about investing in US market
When I discuss investing in the US market with friends, they often share what they believe to be the truth about it. However, these beliefs are frequently incorrect. I share my thoughts below: Myth 1 about US market: I'm s truggling to manage the Malaysian market and still exploring the US market? The Truth: For the past ten years, investing in US index (ETF SPY) and you could have made 180% profit, compared to KLCI you still losing 11%. US market has gone in uptrend for the past many decades mainly due to: i) Inflation: As inflation rises over time, consumer prices increase accordingly. This typically leads to higher nominal consumer spending, which directly boosts the revenue of U.S. companies. ii) Wage, Population, and Consumer Growth: Rising wages, population growth, and increasing consumer demand all contribute to higher spending, similar to the effect of inflation. These factors support long-term revenue and earnings growth for U.S. companies. iii) Political S...