There are many reasons to invest in US markets compared to other markets like Australia, U.K. or India
- Anyone can invest. Brings lot of money on the table plus liquidity as US is a large economy
- Data is most relevant. You get what you buy. Cpi, fed balance sheet, employment figures etc are captured and religiously printed which makes analysis for those who rely on macro, a bit easier
- Options, you can buy options for anything, any expiry, any strike. Risk management becomes easier. You can buy options even on vix
- Insider information although probably still leaked has arguably the most scrutiny compared to anywhere else. Again makes trading a level playing field
- Indexes can be traded 23 hours a day. There is a break of one hour. Risk management is easy. There is a calamity and you want to protect your assets, sell S&P futures.
- Returns during bull market are truly mind boggling if you’re in the right stock or you can even buy leaps
There are many other reasons, for instance reporting is easy, no red tape around level of fdi, except probably take over of military companies. Many others I can’t even list, technicals for instance work better, algorithms can be easily tested as liquidity won’t be a problem
One can buy millions worth of position in S&P without per transaction limit and with liquidity to make the trade happen without a big effect on price
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