Introduction: US Stock Appeal Remains Strong
On July 29, 2026, despite heightened global market volatility, the three major US stock indexes quickly stabilized after a brief pullback, with the S&P 500 regaining the 5,500 mark. This performance reaffirms the long-term logic of US stocks as a core global asset allocation. This article will analyze from multiple perspectives why buying US stocks remains a wise choice for global investors.
1. Innovation Engine of Tech Giants
The US stock market is home to global tech giants like Apple, Microsoft, NVIDIA, and Google, which continue to invest heavily in AI, cloud computing, semiconductors, and other cutting-edge fields. Q2 2026 earnings reports show tech sector profit growth averaging 18%, far outpacing peers in other markets. For example, NVIDIA's AI chip business grew over 40% year-over-year, driving its stock to new highs. This innovation-driven growth model makes US tech stocks not only defensive but also endowed with long-term appreciation potential.
2. Historical Returns and Risk Diversification of US Stocks
According to historical data, the S&P 500 index has delivered an annualized return of approximately 9.8% over the past 20 years, significantly higher than other major global indices. Meanwhile, the US stock market covers 11 industry sectors, allowing investors to diversify risk via ETFs. For example, consumer, healthcare, and industrial sectors complement tech, reducing the impact of single-sector volatility. Additionally, US stocks have excellent liquidity, with daily trading volume often exceeding $500 billion, facilitating large capital flows.
3. USD Assets and Global Allocation
As the global reserve currency, USD assets are often sought after during economic uncertainty. Since 2026, the US Dollar Index has remained strong; allocating US stocks is equivalent to holding USD assets, hedging against local currency depreciation. For Southeast Asian investors, investing in US stock ETFs through channels like the Singapore Exchange (SGX) allows easy cross-border allocation to share in US economic growth.
4. Fed Policy and Market Resilience
Although the Fed maintained high interest rates in the first half of 2026, markets expect rate cuts to begin in the second half. History shows that rate-cutting cycles often boost US stock valuations. The S&P 500's current P/E ratio is about 22x, within a reasonable range. The Fed's easing expectations have attracted large capital inflows; in the last week of July, net inflows into US stocks reached $12 billion, mainly into tech and financial sectors.
5. ETFs and Low-Cost Market Entry
For beginner investors, US stock ETFs offer convenient, low-cost market entry. For example, SPY tracking the S&P 500 and QQQ tracking the Nasdaq have expense ratios as low as 0.03%. Investors can achieve market-average returns without stock-picking. New active ETFs launched in 2026 also provide excess return opportunities. Through dollar-cost averaging, long-term accumulation yields significant results.
Conclusion: A Good Time for Long-Term Positioning
In summary, US stocks, with their leading companies, historical returns, asset attributes, and policy environment, remain the cornerstone of global asset allocation. Investors should adhere to a long-term philosophy and build positions in batches during market pullbacks. As Buffett said, “No one ever made a profit by betting against their own country.” Amid global capital competition, the US stock market will continue to create value for rational investors.
