The U.S. economy may be looked upon as one of the most over- valued ones and many investors do hold the belief that it is ‘hyped up’ as a good avenue for investing. However, it seems that despite the negativity that a few have, the U.S. continues to remain an attractive option for investors worldwide.
Increasing interest in U.S. stocks
In a testament to the increasing interest to stocks in the U.S. market, we see that the Dow Jones has consistently been posting highs over the recent weeks. This could come as a surprise to many who believed that the election of President Trump would dampen enthusiasm for U.S. businesses. To put things in perspective even further, a recent Hargreaves Lansdown Investor Confidence Survey indicates that an impressive 63% of the participants believed that the country’s economic prospects look good for the coming 12 month period. A mere 10% said that the economy would disappoint with its disappointing performance.
Why the U.S. is likely to fare well in the coming years
Investors who have exposure to U.S. markets or businesses need not listen to nay-sayers and this is why. A big factor that will shore up the U.S. economy and help maintain momentum in world markets is that presence here of some truly big names in the technology sector which is growing by leaps and bounds. We can think of Google, Apple, and Facebook offhand as the businesses that lead the sector from the front and have negligible competition across the globe. Given the size and the financial firepower of these biggies, the equation is not likely to skew against them in the near future. This sector will continue to be the cornerstone of America’s economic success in the coming years. The presence of consumer centric businesses such as Nike further add to the economy’s stability as these are viewed as being safe even in times of subdued economic activities worldwide.
Add to this President Trump’s clear stance on making regulatory requirements easier for corporates combined with his predilection for cutting taxes for businesses and we can see good times ahead for the business sector. If these measures do come in, business activity all over the country will receive a major boost and this will further strengthen America’s position as a good business climate for investors everywhere.