While the world asks whether the US has lost its mojo after its disastrous exit from Afghanistan, the country’s stock market continues to power on as if it doesn’t have a care in the world.
Washington’s superpower status may be under threat but after a decade of rip-roaring returns, most investors continue to believe that Wall Street is still the best place on Earth to invest their money.
US technology companies have conquered the world since the financial crisis and the country now boasts five companies worth $1 trillion or more: Apple, Amazon, Microsoft, Google owner Alphabet and Facebook.
US equities have continued to dominate regardless of the country’s political woes, Richard Hunter, head of markets at wealth platform Interactive Investor, says. “The S&P500 has risen by 105 per cent over the last year and is up 21 per cent year-to-date.”
The index of top US stocks now trades at a record high of around 4,500, while the Nasdaq technology index is regularly posting all-time highs of more than 15,000.
The strong US performance has been driven by trillions of dollars of fiscal and monetary stimulus, and historically low interest rates, Mr Hunter says. “Near-zero savings rates force investors to seek a punchier return by investing in shares.”
Yet there are also looming threats and, as the US discovered in Afghanistan, conditions on the ground can change very quickly.
Tougher regulation of technology companies and the country’s fractious relationship with China are both causes for concern, Mr Hunter says.
“The biggest worry is whether the US Federal Reserve will start tapering monetary stimulus before the end of the year and if the economy can stand on its own two feet without it,” he adds.
The biggest worry is whether the US Federal Reserve will start tapering monetary stimulus before the end of the year and if the economy can stand on its own two feet without it
Richard Hunter,
head of markets, Interactive Investor
The stimulus continues to flow and US shares are likely to continue rising for now, but Mr Hunter says rival stock markets such as the UK’s FTSE 100 are now far cheaper and potentially offer better value.
“The recent spate of M&A activity, with US private equity firms snapping up undervalued UK companies, has helped the FTSE rise by more than 10 per cent so far this year,” Mr Hunter says.
The US will continue to dominate global equity markets over the coming decade, Peter Garnry, head of equity strategy at Saxo Bank, says.
“It dominates many high-growth technologies such as cloud computing, cyber security, digitalisation, semiconductors, machine learning and biotechnology,” he adds.
The US is lacking in one key area: it is trailing the green shift to renewable power and energy efficiency, Mr Garnry says. Tougher tech regulation and rising interest rates are also threats, he says, but the US remains the one to beat.
Yet the country is in serious fiscal trouble, with debts totalling $28.7tn, more than double the country’s annual gross domestic product, Chaddy Kirbaj, vice director at Swissquote Bank in Dubai, says. “The question is, do investors have a viable alternative? To put it bluntly: the answer is no.”
The US, along with Europe and Japan, will remain the preferred option for global investors, according to Mr Kirbaj.
Investing in shares is always unpredictable and the US stock market will suffer a correction at some point, Mr Kirbaj predicts. But investors must take a long-term view and look beyond current worries.
The question is, do investors have a viable alternative? To put it bluntly: the answer is no
Chaddy Kirbaj,
vice director, Swissquote Bank
“The S&P 500 stood at around 1,200 two decades ago, today it’s above 4,500. Investors will also have generated dividends on top. That’s the timescale we should use when we think about investing,” he recommends.
However, Mr Kirbaj agrees that it may be time for cheaper, developed markets to play catch up, singling out Europe. “The US stock market is not yet finished as a superpower, but the rhythm is going to slow.”
US-listed companies make up an astonishing 60 per cent of the global stock market, evidence of the sheer clout of its major corporates, says Jason Hollands, managing director of Tilney Investment Services.
No country can hope to match its success in building companies from start-ups to multibillion-dollar firms.
“The US has a highly developed financial eco-system and deep pools of private capital, which is why so many global companies head there to raise capital,” he says.
China has a lot of catching up to do when it comes to churning out entrepreneurs and may never get there.
The country’s share of the MSCI global index is tiny compared with the US at just 4.1 per cent, Mr Hollands says.
“Providing the US does not lurch aggressively away from capitalism, it is going to remain the dominant stock market superpower for a long time yet, even if its political influence and prestige wanes,” he adds.
However, Mr Hollands believes the US may be overvalued, especially the Big Tech sector, while the Democratic Party’s “spending spree” could weaken public finances. “Right now, I see better value in markets such as the UK, Japan and Europe, where the earnings recovery still has further to run.”
Vijay Valecha, chief investment officer at Century Financial in Dubai, suggests that investors look beyond the obvious tech names like Apple and Amazon. “US technology brands such as PayPal, Oracle, Intel, Netflix, Tesla and Adobe are fast-growing companies that overshadow any other country’s big names.”
The US has suffered political and military setbacks before and its stock markets have still shone through, Mr Valecha says.
“Forget Afghanistan. Forget geopolitics. The US stock market will remain dominant. Investors can’t afford to ignore it,” he adds.
If the US stock market does crash at some point, that could be a good opportunity to get exposure for the next 20 years of action.
The%20Roundup%20%3A%20No%20Way%20Out
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Lee%20Sang-yong%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Don%20Lee%2C%20Lee%20Jun-hyuk%2C%20Munetaka%20Aoki%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
Habib El Qalb
Assi Al Hallani
(Rotana)
Ferrari
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Michael%20Mann%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Adam%20Driver%2C%20Penelope%20Cruz%2C%20Shailene%20Woodley%2C%20Patrick%20Dempsey%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
EGYPT SQUAD
Goalkeepers: Ahmed El Shennawy, Mohamed El Shennawy, Mohamed Abou-Gabal, Mahmoud Abdel Rehem "Genesh"
Defenders: Ahmed Elmohamady, Ahmed Hegazi, Omar Gaber, Ali Gazal, Ayman Ahsraf, Mahmoud Hamdy, Baher Elmohamady, Ahmed Ayman Mansour, Mahmoud Alaa, Ahmed Abou-Elfotouh
Midfielders: Walid Soliman, Abdallah El Said, Mohamed Elneny, Tarek Hamed, Mahmoud “Trezeguet” Hassan, Amr Warda, Nabil Emad
Forwards: Ahmed Ali, Mohamed Salah, Marwan Mohsen, Ahmed "Kouka" Hassan.
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Mohammed bin Zayed Majlis
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Carzaty%2C%20now%20Kavak%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3ECarzaty%20launched%20in%202018%2C%20Kavak%20in%20the%20GCC%20launched%20in%202022%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20140%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Automotive%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3ECarzaty%20raised%20%246m%20in%20equity%20and%20%244m%20in%20debt%3B%20Kavak%20plans%20%24130m%20investment%20in%20the%20GCC%3C%2Fp%3E%0A
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tori Amos
Native Invader
Decca
Palestine and Israel - live updates
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4.0-litre%20flat%206-cylinder%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20PDK%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E500hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E450Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh530%2C300%20as%20tested%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
The biog
Name: James Mullan
Nationality: Irish
Family: Wife, Pom; and daughters Kate, 18, and Ciara, 13, who attend Jumeirah English Speaking School (JESS)
Favourite book or author: “That’s a really difficult question. I’m a big fan of Donna Tartt, The Secret History. I’d recommend that, go and have a read of that.”
Dream: “It would be to continue to have fun and to work with really interesting people, which I have been very fortunate to do for a lot of my life. I just enjoy working with very smart, fun people.”
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The years Ramadan fell in May
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Cracks in the Wall
Ben White, Pluto Press
The Kites
Romain Gary
Penguin Modern Classics
England World Cup squad
Eoin Morgan (capt), Moeen Ali, Jofra Archer, Jonny Bairstow, Jos Buttler (wkt), Tom Curran, Liam Dawson, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, James Vince, Chris Woakes, Mark Wood
More from Neighbourhood Watch
