UOB Kay Hian Private Wealth Management
Date of Report: September 2025
Why Investors Should Pay Attention to the US Stock Market: An In-Depth Analysis

Introduction: The Case for Investing in US Stocks

The United States remains at the forefront of global finance, boasting the world’s largest and most dynamic stock market. This report by UOB Kay Hian Private Wealth Management explores the compelling reasons why investors should not overlook the US equity market, analyzing its unparalleled economic power, demographic advantages, innovation leadership, and superior corporate performance.

US Economic Powerhouse: Outperforming Global Peers

Consistent GDP Growth Leadership

For over two decades, the US economy has consistently outpaced other major developed regions such as the Eurozone and Japan. This growth highlights the robust and resilient nature of the American economic engine, which has weathered global headwinds and maintained a trajectory of expansion [[2]].

The World’s Largest Consumer Economy

The US is renowned as the “consumer wallet of the world,” hosting the largest annual household consumption globally. This dominant consumer-driven economy powers not only domestic growth but also supports global demand chains. Notably, from 2004 to 2022, the US saw the highest increase in annual household consumption, far surpassing its developed market peers.

Demographic Strength and Global Investment Appeal

Largest and Most Dynamic Population Among G7

The US stands as the most populous nation within the G7, with a unique ability to sustain population growth. This advantage is bolstered by its attractiveness to global talent and immigrants, ensuring a steady influx of skilled labor and consumers. The demographic vitality supports long-term economic expansion and underpins the future of US equities [[3]].

Leader in Attracting Foreign Direct Investment (FDI)

The US is the premier destination for foreign direct investment within the G7. Its stable regulatory environment, innovation ecosystem, and strong corporate governance make it the top choice for global capital.

Innovation, Technology, and Corporate Leadership

World Leader in R&D Investment

The US drives global innovation with the highest research and development spend, accounting for approximately 30% of the world’s R&D expenditures in 2023. This investment fuels technological advancements and maintains the country’s competitive edge.

Outstanding Corporate Performance and Shareholder Returns

US companies consistently lead in profitability, efficiency, and return on equity. They also embrace a robust culture of shareholder returns through dividends, share buybacks, and disciplined capital management. Over the last 16 years, US stock indices, particularly the S&P 500, have consistently outperformed global peers.

Exclusive Insights: US Bi-Weekly Outlook and Model Portfolio

US Bi-Weekly Market Outlook

UOB Kay Hian provides a dedicated bi-weekly publication, offering timely and actionable insights into the US market landscape. The outlook covers market trends, economic updates, and strategic investment ideas, empowering investors with the information needed to make informed decisions [[5]].

US Stock Model Portfolio

Clients receive access to a curated US stock model portfolio, built upon rigorous research and ongoing market analysis. The portfolio is designed to help investors capitalize on the strengths of US equities, ensuring broad exposure to market leaders and innovators [[6]].

Contact Information: Private Wealth Management Team

To support investors, UOB Kay Hian’s Private Wealth Management team offers direct access to subject matter experts across structured products, fixed income, unit trusts, and trade support. Key contacts include:

• Matthew Wong – Group Head Of Products
• Ryan Yi – Structured Products (Ext 6719)
• Benjamin Tan – Fixed Income & Credit (Ext 6749)
• Tan Jun Yang – Unit Trust & ETFs (Ext 6376)
• Huang Yutian, Ken Qin Jian – Trade Support (Ext 6731)

Disclaimer

This report is distributed by UOB Kay Hian Private Limited, a holder of a capital markets services licence and an exempt financial adviser regulated by the Monetary Authority of Singapore. For further clarification or to address any matters raised in this analysis, please contact UOB Kay Hian directly.

Conclusion: US Stocks Remain a Must-Have in Global Portfolios

With unmatched economic strength, demographic advantages, global investment appeal, leadership in innovation, and outstanding corporate performance, the US stock market stands as an essential component of any diversified global investment portfolio. Investors seeking growth, resilience, and superior returns should strongly consider a strategic allocation to US equities.