Is It Good To Invest In US Stocks?

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Is It Good To Invest In US Stocks?

 Is It Good To Invest In US Stocks?
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Summary

  • The US is in talks to streamline corporate tax rate globally for the tech companies.
  • The Aviation sector will get a big boost as travel curbs are relaxed worldwide.
  • The vaccination drive is giving a major push to the speedy recovery of the US economy.

It is a genuine question for any investor who is considering various avenues to invest his or her money. The NASDAQ Composite Index, which consists of around 2,500 listed companies, is a valid measure to consider investing in US stocks.

On May 28, President Biden announced in his budget a hefty allocation of US$133.7 billion for health and human services. Significantly, though, the healthcare stocks account for 10% of NASDAQ shares.

Health Stocks

With the National Month of Action announcement on Wednesday, the US expects to jab at least one dose of vaccine to 70% of its adult population by July 4. In addition, with the departure of Covid-19, the economy is destined to rebound.

However, this sector may be the odd one to benefit from the pandemic. Pfizer Inc. is one of the largest pharmaceutical companies in the world. In May, it got FDA approval for emergency use of its COVID-19 vaccine in the 12 to 15 age group. It is the first vaccine authorized for use in this age group. It spends a significant amount on research and development and has increased revenue for the past three years.

Source: Pixabay.

Also Read: What Is The Difference Between NYSE and NASDAQ?

Technology Stocks

Another segment holding the most considerable position on NASDAQ is the technology sector, which accounts for around half its total value. Most technology giants are based in the US and are generating fat bottom line year on year.

Facebook is a California based bluechip company with a US$933.3 billion market cap. The stock rose 22.4% year to date and 888% since its listing in 2012. In addition, Facebook's net income has been steadily increasing. In FY 2020, it collected US$ 29.15 billion in revenue.

Google is a US$1.59 trillion company. Its share price has grown 38% YTD.

The US has taken an agreeable stance on overseas corporate gains tax for technology companies and proposed a 15% tax against 21% proposed earlier. Meanwhile, a final decision on the issue will be taken at a meeting this week. So, if things go favorably, these tech giants will keep on earning good profits without any conflict.  

Also Read: What Are The Top 10 NASDAQ Stocks?

Aviation Stocks

The third sector that will rise once pandemic safety measures are in place is the aviation and travel sector. Boeing, the aerospace, and defense company, provides builds commercial and defense aircraft and space & security related products. It is one of the companies in the duopoly with Airbus. In 2021, Boeing has got more than 250 orders for Boeing 737 MAX. 

The International Air Transport Association (IATA) has relaxed the Covid-19 related travel restrictions after new data showed a low virus positivity rate. It is undoubtedly good news for the airplane maker and its investors.

Consumer Stocks

Another evergreen sector is consumer goods and services which is around 25% of the NASDAQ Composite. Colgate Palmolive has recently announced its plan to conduct its oral care experiment at the International Space Station (ISS). In existence since 1806, it has a presence the world over and generating higher net income year on year with US$ 2.7 billion in FY 2020. 

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