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 each year, increased consumer spending will directly translate into higher revenue for U.S. companies. ii) Increasing wage, population, consumer growth , the explanation is same as i) iii) Political stability (unlike CN or MY which scare many investors away, thus market remain weak in long term) iv) Periodic Changes in Index - Companies with weaker performance will be periodically replaced by stronger ones within the index's c...