Yvan Delaplace

Why choose to invest in US stocks
Investing in US stocks is actually investing in companies listed in the United States, which is equivalent to investing in the company's genuine business results. Many people believe that investing in stocks is no different from gambling, just buying the stock code of a company. As for whether to make money or lose money, it all depends on luck, but this is not the case. When you buy stocks of a company, you become a shareholder, and selling stocks is a transfer of ownership of the company.

Malaysian stocks are stocks purchased on the Malaysian Stock Exchange, while US stocks are stocks purchased on the US Stock Exchange. The trading rules of different stock exchanges vary.

★ US stocks are more suitable for small capitalists
The smallest trading unit in the Malaysian stock market is 100 shares, also known as 1 lot. For example, if you want to purchase stocks from Yunding Group, which have a price of approximately RM 5.5 per share and a minimum trading volume of 100 shares, then you need to invest at least RM 550; The US stock market, on the other hand, does not have a limit on trading per hand, as a minimum of one hand can be traded.

★ More choices for US stocks
There are over 8000 stocks in the US stock market, while the number of stocks in other countries is lower than that of the US stock market. Many non US companies, such as Alibaba and JD.com, also choose to go public in the US because the US is the most liquid financial market in the world, and listing here can obtain a larger amount of capital.

★ The types of companies in the US stock market are more internationalized
Compared to other countries, companies in the stock market are relatively small and medium-sized, and large companies like Alibaba have very few global stocks.

★ The daily trading volume of US stocks is very high
The US stock market has attracted global investors, so the likelihood of market manipulation is low, while markets in other countries are relatively small, especially some small stocks that are easily manipulated.

★ High domestic demand and strong economy in the US market
The United States has a large population and a very active market, making it the world's largest economy. Therefore, businesses generally operate stably. The stock markets of other countries may be affected by factors such as a small population, insufficient market liquidity, and unstable enterprise development.

Outlook on the 2024 US Stock Market Trends
Wall Street has mixed views on the trend of the US stock market in 2024, but overall, economists and analysts remain relatively optimistic about the economic and stock market outlook.



According to the average predicted by Wall Street analysts, the price target for the S&P 500 in 2024 is 5029 points, indicating that the index will rise by about 10% and reach a historic high in the next 12 months.



Bank of America predicts that the target level for the S&P 500 index in 2024 is 5000 points. Its research report points out that after more than a year of aggressive interest rate hikes and sustained balance sheet contraction, the Federal Reserve has made significant progress in tightening monetary policy, and American companies have also adapted to higher interest rates and inflation. The United States has overcome the greatest macroeconomic uncertainty, and the market has also digested significant geopolitical shocks.



The analysis by Royal Bank of Canada suggests that a sustained slowdown in inflation can greatly support the P/E ratio. Although the 2024 US presidential election may add uncertainty to the US stock market, the S&P 500 index's average increase in historical presidential election years is about 7.5%, which should also apply to the 2024 presidential election.



JPMorgan Chase, which is bearish on the US stock market trend next year, predicts that the target level for the S&P 500 index next year is 4200 points. JPMorgan Chase stated that high stock valuations, high interest rates, weak consumption, rising geopolitical risks, and potential economic recession have led to a lack of confidence in the continued rise of the US stock market in 2024. It is expected that the US stock market will face a more challenging macro background next year, with a weakening consumer trend and a reversal in investor positions and sentiment.

Before the US stock market, the three major futures indexes rose together; Paramount rose nearly 8% globally; Tesla rose nearly 3%, with Q2 delivery exceeding expectations; Apple's next-generation AI chip M5 is rumored to adopt TSMC products
① As of press release, Dow Jones futures rose 0.41%, S&P 500 index futures rose 0.62%, and Nasdaq futures rose 0.84%.

② Nvidia, which closed down 1.31% yesterday, fell nearly 1% before the US stock market opened today. As of the time of writing, Nvidia continued to decline by 0.79%. According to previous reports, the French antitrust regulatory agency plans to accuse Nvidia of engaging in anti competitive behavior, with a maximum fine of $6.09 billion according to relevant regulations.

③ As of press release, Paramount's global US stock market rose nearly 8% before the market. According to foreign media, US production company Skydance has reached a preliminary transaction agreement to acquire the controlling stake in the company.

④ Tesla's US stock market rose nearly 3% before trading, with Q2 delivery exceeding expectations. As of press release, Tesla's US stock market rose 2.83% before trading, briefly exceeding 3%. Wade Bush Securities has raised Tesla's target stock price from $275 to $300 and predicts it will reach $400 in a bull market scenario. Previously, Tesla announced a delivery volume of 444000 vehicles in the second quarter of this year, higher than market expectations.

⑤ As of press release, some Chinese concept stocks have risen, with Ideal Automobile up 2.7% and Beike, Baidu, Bilibili, and JD.com up over 1%.

⑥ According to reports, Sanofi's drug Dupixent has been approved in Europe as an additional treatment for certain patients with chronic obstructive pulmonary disease. As of the time of writing, Sanofi US stock rose more than 1% before the market.

⑦ According to Morgan Stanley, Apple may use TSMC's advanced stacking SoIC-X packaging technology in its upcoming M5 series chips, which will be used for AI servers. Apple may achieve mass production of M5 chips in the second half of next year, and TSMC is expected to significantly expand its SoIC production capacity next year. As of press release, TSMC's US stock market rose 0.74% before trading.

⑧ As of press release, spot gold has risen by $2340 per ounce, marking the first time since June 21st.

Who else dares to say that the US stock market is going to fall? Famous short selling analysts on Wall Street are being "kicked out"
Prior to the Independence Day holiday in the United States, market reports indicated that Marko Kolanovic, the renowned Wall Street bear and chief market strategist who had worked for JPM. US for 19 years, was about to resign in search of "other opportunities". Kolanovich himself did not respond to any questions from the media, and there were no updates on his LinkedIn page.

Generally speaking, the unwritten rule in Wall Street is not to lay off employees before Fridays and holidays to avoid causing greater negative psychological impact on employees. Choosing to lay off employees from Monday to Thursday (avoiding holidays) can allow laid-off employees time to handle related affairs, seek career guidance, psychological support, or start looking for new job opportunities before weekends.

The news of resignation that broke out at this time cannot help but make people imagine what kind of huge contradiction it was that prevented the 43 year old veteran from receiving a dignified "farewell" in the end.

The US stock market has seen a booming rise this year, and in recent weeks, it has broken through new highs every day. The charts of the three major indices are like a sharp sword, although they failed to pierce through Kolanovich, the pressure on his customer base may not be as strong as that of this physics PhD.

Kolanovic, who remained steadfast in his original intention, only reiterated his target level last week, giving the S&P 500 a year-end target of 4200 points for 2024, which is the lowest among major Wall Street stocks. The closing price of the index on July 3, 2024 was 5147.21 points, which means that to reach its target level, the S&P 500 index needs to fall by more than 18%.

In addition, Kolanovich does not recommend his clients to invest in stocks, especially high valuation technology stocks. If you really want to buy, buy defensive stocks, such as Coca Cola (KO. US) and Wal Mart (WMT. US).

Let's see, Coca Cola has gained 9.17% so far this year, and Wal Mart has gained nearly 31%. At first glance, if you follow Kolanovich's advice to buy stocks, the investment return is not bad. However, without comparison, there is no harm. In recent years, NVDA. US, which has dominated the screen, has risen by 783% in the past two years and nearly 160% so far this year. If I had bought Nvidia for $1000 five years ago, this investment would have turned into $31000 this year, enough to buy a used BMW and drive it in the United States.

The clients that Koranovich serves are mostly large institutional investors, hedge funds, wealth management companies, and high net worth individuals, in simple terms, wealthy individuals. The investment amount is naturally much more than $1000. If it were you, seeing that you haven't taken advantage of this trend, the advice you received is still that the US stock market is going to fall. Can you have no objections in your heart?

At present, there is no news indicating that JPMorgan plans to modify the target level of the S&P 500 index after Kolanovic's resignation. But Xiaomo seems to have figured out what its customers like to see, and the bank has announced that its successor, Dubrovko Lakos Bujas, who favors large growth stocks, will become the new Chief Market Strategist.

【 US Stock Closing 】 "Non farm" Data Helps to Cut Interest Rates, Wall Street's Record Setting Rise Continues
The S&P 500 index rose 0.54% to 5567.19 points, setting a new historical high; The Dow Jones Industrial Average rose 0.17 points to close at 39375.87 points; The Nasdaq Composite Index rose 0.9% to close at 18352.76 points, setting a new record.

US stock market: Wall Street hits new highs in a row, not afraid of political pressure influence

stock market closing # This week's PMI for "small non farm" and ISM services fell short of expectations, and the most anticipated "non farm" employment report further strengthened Wall Street's hope for interest rate cuts, with the US stock market continuously reaching new highs.

The data shows that the service industry is shrinking and the unemployment rate is rising, which enhances people's optimism about interest rate cuts. Biden's poor performance on June 27 triggered people's bet that Trump's return to the White House would relax fiscal policy. The yield of 10-year US treasury bond bonds initially soared, but then erased the increase. The dollar also fell for the first time since May.

In terms of the market, major stock indexes rose together this Wednesday. The Nasdaq has risen by 3.5%; The S&P 500 has risen nearly 2%, marking the fourth week of gains in five weeks; The Dow Jones rose nearly 0.7%. Excluding the suspension of trading during Thursday's Independence Day holiday in the United States, the S&P 500 index has risen for four consecutive days, reaching three historic highs. Since the beginning of this year, the index has set 34 records, with an increase of nearly 17%. The Nasdaq index has also risen for four consecutive weeks this week, continuously breaking previous high records.

US stock funds have regained the favor of investors, and funds are beginning to turn into net inflows
The rebound of the US stock market in the summer has begun to attract investors to buy back stock funds: as of last Wednesday, US mutual funds and exchange traded funds had a net inflow of $11.7 billion.