Do you enjoy investing on the American stock market?
Well, if you do, you certainly aren’t alone.
Millions of people are in love with American stocks, trading them feverishly every day.
On 15 April 2026, I watched the daily trading volume on the Nasdaq hit a high of US$480 billion.
To put that into perspective: that’s almost twice the annual GDP of New Zealand.
That’s remarkable, isn’t it?
For me, this just reinforces the fact that the American market is the most popular one in the world. No other country comes close to matching its level of depth and liquidity.
Source: Charlie Bilello
Of course, it’s easy enough to write off American dominance as being driven by hype and hot air. But you shouldn’t forget that there are real fundamentals at play here:
- Over the past few years, the United States has enjoyed a productivity boom, allowing it to outperform its peers by a large margin.
- This has accelerated wealth-building, and American households have clearly benefited from this trend.
Source: Heather Long / X
Source: Peter Mallouk / X
Breathtaking success? Absolutely. But watch out. Such success also comes with its own set of problems. You might call them first-world problems:
- At the moment, the American market is the most expensive one on the block. According to MSCI, it has a forward price-to-earnings ratio of 21.50. This makes American assets between 47% and 78% more expensive than assets in Europe and emerging markets.
- This means that investors who choose to play in this American sandbox are having to do so at an eye-watering premium. Concentration has also increased lately. The top 10 companies in the United States now represent almost 40% of the S&P 500.
Source: Leverage Shares / X
Mind you, this doesn’t mean that the American market is due to collapse anytime soon. In fact, it’s quite the opposite:
- According to analyst Ryan Detrick, earnings growth for the S&P 500 in 2027 is projected to be almost 40% higher compared to 2025.
- In other words: this growth engine is still powering ahead, defying all expectations. But be warned: anyone who wants to catch this ride is being forced to pay a lofty price.
So, where does this leave value investors who are searching for a cheaper ticket? What if they want to diversify their portfolios beyond American Big Tech? What can they do?
- Well, perhaps they need to explore contrarian opportunities outside the United States.
- For this reason, I’ve been looking at a foreign stock market that’s brimming with potential. But unlike the United States, which is universally loved, this market suffers from a poor image. The sentiment here is profoundly negative.
- I have noticed that most financial analysts are refusing to cover this market, for fear of causing offence. Instead, they have chosen to self-censor. This almost feels like a conspiracy of silence.
- So I’m wondering: is it time to be rebellious? Is it time to embrace some courage? Should we take a closer look at what they don’t want us to see?
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