The US stock market is dubbed the largest and most liquid exchange in the world with a market capitalization comfortably sitting above $50 billion. The exchange “houses” some of the best, finest and fast-growing global brands across different sectors like consumer, energy, financials, health care, industrial, IT, materials, real estate, telcos, and utilities.
Beyond the sectors mentioned, the US stock market also offers a variety of fund and ETF listings that reflects different categories of assets exposures one can think of; oil, gold, currencies, emerging markets, treasuries/bond up to cryptos. This means that whatever asset classes you may be interested in gaining exposure to, you can leverage on these diverse options to build foreign currency portfolio away from the Naira.
While investors are encouraged to invest in their local market so that indigenous companies will easily access capital for expansion, I strongly believe that the unique opportunities in the US stock exchanges are strong reasons one should diversify or hedge against the risk of single currency investments:
1. When you buy U.S.-listed securities… you’re buying the world
A larger percentage of the annual revenues generated by companies listed on the NYSE, NASDAQ, and AMEX actually come from outside the U.S. In 2018, an average of 52% of the sales posted by the top 500-listed companies ( S&P 500 index) didn’t come from the U.S. Well, you already know that a good number of companies listed in the US stock market are actually foreign companies – The reason the choose U.S. exchange is because that’s where the real money is.
So when you’re investing in U.S.-listed stocks, you are investing in the rest of the world.
2. Over 10,000 stocks are listed on NYSE, Nasdaq, AMEX and OTC
If you are an active trader in the Nigeria stock exchange, you will agree with me that one of the biggest challenges facing local investors is the availability of stocks to trade; we are only limited to 100 or less actively traded stocks, besides, some of these companies aren’t swift in releasing their quarterly reports, hence leaving you with lesser stocks to trade.
In the US stock market, this isn’t so; you have over 10,000 stocks to pick from and if one isn’t swift in complying with market rules, you still have thousands of listing stocks to trade. This is no doubt the reason over $50 trillions of US dollars goes in trade among millions of investors annually in NYSE, Nasdaq, AMEX and OTC combined.
3. U.S.-listed stocks offer exposure to all asset classes.
Like I mentioned earlier, trading US stocks isn’t limited to the key sectors mentioned in my opening paragraph, there are stocks that reflect different asset classes; all you need to do is spot the top performing assets and buy stocks that track their daily prices.
For instance, a heightened tension between the US and Iran could be bullish for oil as a result of sanctions. A smart investor might just key into oil stocks to take advantage of the rising oil prices. Likewise gold metals, currencies, and cryptocurrencies, they all have specific stock ETFs that track their market prices.
Before Bitcoin skyrocketed to a high of $13,000, an unknown crypto stock (I only reveal this to my Whatsapp group members) had already crushed that high level 2- 3 weeks ahead. This crypto stock price was initially introduced at 1/1000 of bitcoin market prices but had since surpassed that estimate to reflect growing institutional interest in the digital currency market. Right now, the stock trades at 30% premium to what bitcoin is currently selling for at major exchanges. I personally use this stock and technical indicators to predict bitcoin prices.
This is one of the best secrets to diversifications your stock broker won’t let you know.
If you would love to learn more about trading US stocks from the comfort of your home or office so you can take advantage of growth opportunities in different countries and asset classes, join my private Whatsapp group training ( on 30th June and 1st July 2019) where I will walk you through the process of:
- opening a legitimate stock trading account with a US broker
- analysing US stocks that are posting share price growth of 100% – 500%.
- building a crypto asset portfolio that generates passive income in USD.
For inquiries, feel free to chat me on +2348084219399