The US stock market has always attracted global investors seeking long-term growth opportunities. But with ongoing tariff tensions, trade wars, and global uncertainties, is it still a good
The US stock market has always attracted global investors seeking long-term growth opportunities. But with ongoing tariff tensions, trade wars, and global uncertainties, is it still a good time to invest in US equities? Let’s hear what experts have to say and what strategies they recommend in today’s volatile market.
Despite market fluctuations, US stocks continue to draw interest from both domestic and international investors. The reason? Global giants like Meta, Amazon, and Microsoft are currently trading at substantial discounts from their all-time highs.
Many market analysts believe this correction has opened up a compelling buy zone for long-term investors. Finance expert Akshat Shrivastava recently pointed out that blue-chip stocks in sectors like technology, healthcare, and consumer goods have shown remarkable resilience in terms of earnings, global market presence, and innovation.
What’s interesting, he added, is that while Indian investors possess the appetite for risk, many lack exposure to US equity opportunities — not because of unwillingness, but due to limited access to timely, relevant knowledge.
“When firms like Meta are available at a 30% discount from their peak, and most Indian investors remain unaware of this, it’s not about risk appetite. It’s about the right information,” Shrivastava emphasized.
In recent weeks, tariff disputes between the United States, China, and the European Union have unsettled global markets. Historically, financial markets dislike uncertainty — and trade wars introduce exactly that.
Following tariff hike announcements, key US market indices like the S&P 500, Dow Jones, and Nasdaq have witnessed noticeable drops. In fact, the S&P 500 alone slipped by over 6%, while the Dow and Nasdaq saw declines of more than 7%.
These moves have left investors wondering whether to continue trusting US equities, or shift focus towards other international markets like India, where macro fundamentals remain relatively stable.
While tariff tensions create short-term market headwinds, many experts argue that this volatility could present a buying opportunity for long-term investors.
Shrivastava recommends diversification through Exchange-Traded Funds (ETFs) or index funds for those who find individual stock picking overwhelming. With ETFs, investors can access a broad portfolio of US stocks at a lower cost and with reduced risk.
He also believes that both India and US markets offer valuable investment opportunities, but allocation timing is key.
“It’s your job as an investor to figure out which market is worth increasing exposure to, at what point. Right now, with firms like Meta down 30%, it’s worth taking notice,” he explained.
However, not everyone is bullish on international diversification at this point.
Chethan Shenoy, Executive Director & Head of Product & Research at Anand Rathi Wealth Limited, advises investors to prioritize Indian equities for now.
According to Shenoy, India’s economic fundamentals are on solid ground. With inflation staying within the Reserve Bank of India’s (RBI) target range and fiscal deficit figures better than expected, the Indian market is poised for strong growth.
“The recent market corrections in India were due to temporary global factors, not weaknesses in domestic fundamentals,” he noted. “Long-term market growth will be driven by corporate earnings and macroeconomic factors, and India looks well-positioned on both fronts.”
Shenoy suggests that investors should allocate the majority of their capital to diversified domestic equity mutual funds — across market capitalizations and investment strategies like value, contra, and focused funds.
For those who still wish to gain some global exposure, he recommends limiting international investments to no more than 5% of the total portfolio, preferably through overseas ETFs or mutual funds that track US market indices.
If you’re considering US stocks right now, here are a few expert-backed strategies to keep in mind:
Before investing, analyze how dependent a company is on international supply chains and global trade. Companies with high exposure to tariffs may face increased costs and pressure on profit margins.
Focus on sectors known for their defensive qualities and consistent earnings, like healthcare, technology services, and essential consumer goods.
For new or risk-averse investors, ETFs tracking the S&P 500, Nasdaq-100, or specific sectors offer instant diversification and reduced individual stock risk.
As Shenoy advises, keep global diversification to a modest portion of your portfolio — around 5% — unless you have high risk tolerance and long-term investment goals.
Markets are volatile in the short run, but quality companies tend to recover and grow over time. Use dips strategically and avoid making investment decisions based on panic.
The current tariff tensions and market volatility can be unsettling — but they also create opportunities for investors with a long-term vision.
While experts are divided on the extent of global diversification you should pursue, the consensus is clear: Quality companies, whether in India or the US, will continue to thrive over time.
If you’re considering US equities, do your homework, prioritize fundamentally strong sectors, and consider using ETFs for broader exposure. And above all, remember that investing is a marathon, not a sprint.
Source : Business Today
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