7 Reasons to Invest in US Stocks from Malaysia
•By Shazwan Ismaon
Artikel ini juga tersedia dalam Bahasa Melayu
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The global stock market refers to stock markets around the world that have various companies being traded. In Malaysia, we have a stock market known as Bursa Malaysia. In fact, whether you realise it or not, there are many other markets out there offering the buying and selling of company shares. This opens up a wide range of trading and investment opportunities for us.
The global stock market consists of several different markets, including the United States stock market, Asian stock markets, European stock markets, and many more. Each stock market has different characteristics and can provide different returns.
The United States of America (US) stock market is one of the largest stock markets in the world. It has a wide variety of companies being traded, providing more attractive investment opportunities. For Malaysian investors, here are 7 reasons why investing and trading in the US stock market is important.
The US stock market offers access to companies with a global reputation. These companies have significant strength in the global market and have the potential for high growth. For example, Apple, Amazon, and Microsoft are some of the most well-known companies worldwide and can be found on this stock market.
For traders in particular, trading hours are important because traders who typically buy and sell stocks within a short timeframe need to monitor their stock movements while the market is open. This can be difficult when trading on Bursa Malaysia because the trading hours and working hours for most Malaysians are the same — 9am to 5pm.
This gives the US stock market an advantage because its trading hours are from 9.30pm to 4.30am Malaysian time. So, if you are busy working during the day, you can monitor the US market at night without any interruptions.
Trading and investing in the global stock market offers many opportunities for high returns. In the long run, the US stock market has delivered positive results and provided opportunities for long-term growth. Investors can profit from stock price appreciation as well as dividends from the companies they invest in.
Malaysian investors can also take advantage of currency exchange rates. In most cases, the US dollar is stronger compared to other currencies, including the Malaysian ringgit. This means that investors can profit if the dollar exchange rate increases.
Investors in the US stock market can benefit from risk reduction. The US stock market has a wide diversity of companies, which means investment risk can be minimised by investing across various sectors and companies. This can help balance risk and reduce potential losses.
Because the US stock market receives high attention from the entire world, information about companies in the US market is much easier to find. Not only information, but technical and fundamental analysis discussions are also conducted more extensively by investors around the world.
However, as smart investors, we need to be wise in evaluating news so that we can distinguish between news that is 'good' and 'not so good'.
For investors who register under Mahersaham, you can enjoy the benefit of using the Mahersaham Global Bot, which can help you make profits in the US market.
This advantage helps you to screen and identify shariah-compliant stocks that have the potential to generate profits.
Overall, investing and trading in the US stock market offers many opportunities for Malaysian investors. With access to leading companies, opportunities for high returns, currency exchange gains, risk reduction, and advanced technology and infrastructure, Malaysian investors should consider investing in the US stock market.
However, like all investments, there are risks involved in trading and investing in the global stock market. Changes in global economic conditions, politics, and stock market crashes can affect investment performance.
Therefore, before investing in the global stock market, make sure to conduct thorough research and consider the risks and rewards of the investment. Additionally, ensure you understand the global stock market and the various factors that influence it before making investment decisions.
The US stock market offers access to the largest and most innovative companies in the world such as Apple, Tesla, and Amazon. It also provides portfolio diversification, potential currency exchange gains, and very high liquidity.
Key advantages include access to global giant companies, a larger and more liquid market, trading hours that allow investors to trade outside of Malaysian working hours, and the opportunity to profit from USD strengthening against MYR.
Yes, there are many shariah-compliant US stocks. Investors can use recognised shariah screening lists to identify stocks that comply with Islamic investment principles.
The first step is to open a global trading account through a licensed broker. After that, learn the basics of the US market and start with small investments while building your investment knowledge.
Investing in US stocks offers various advantages for Malaysian investors, including access to global giant companies and high profit potential. However, like all investments, it requires knowledge and thorough research.
Start your investment journey now. Open a CDS account for the Malaysian market and download our free investment basics ebook to build a strong foundation of investment knowledge.