Why the US Stock Market is Hard to Ignore

There's a lot of pull in the US stock market. A large share of global equities is listed in the US. When we hear "the market" being referred to, it's usually the S&P 500. That’s simply how it is.

Investing in US equities has become more accessible worldwide. Modern platforms make entry simple and quick. Geography is no longer a barrier to ownership.

The menu is overwhelming. Over 6,000 companies listed on the New York Stock Exchange and NASDAQ span nearly every industry imaginable. This diversity allows investors to invest in any economic vision they like in US equities.

The key advantage is liquidity. Massive trading volumes occur every day. Prices remain efficient. Large orders execute smoothly. Just try that in a frontier market and American equity market trading you'll see why liquidity is important.

Quarterly earnings create major volatility. Twice a month, big firms release their quarterly reports. Price movements can be extreme during earnings. The traders who can read earnings setups, implied volatility and the guidance have an advantage. Others often get caught off guard.

Exchange rates affect returns. US stocks are dollar-denominated investments. Currency gains can offset stock profits. This is not a problem - it's just a consideration.

Taxes vary from country to country but the US defaults to 30% withholding tax on dividends paid to non-residents. Tax treaties can reduce this rate. Best to check before investing in a US dividend portfolio and finding out the rate later.

Consistent investors ignore short-term noise and stay invested.