Why US Stocks Are the Top Pick for 2025: Insights from Bank of America
A fresh survey from Bank of America, in which fund managers handling billions shared their views, shows a clear shift post-election: US stocks are now the top pick for 2025, with global stocks close behind.
And while gold, cash, and commodities didn’t take the top spot, US stocks stood out. So, what gives them the edge?
Here’s why US stocks stay on top, even long-term:
📊 Riding the wave of economic growth
US stocks act like a mirror for the US economy—when the economy grows, so do the profits of its biggest companies. Unlike currencies or commodities, US stocks directly benefit from rising profits across diverse industries. Think of it as catching a ride on America’s growth train!
🔄 Harnessing steady market momentum
With average returns of 10-11% over the years, the S&P 500 has consistently outpaced traditional assets like gold and currencies. Thanks to passive funds and ETFs, investors can tap into these gains with minimal effort, keeping a steady flow of buying power that fuels the index’s growth.
🌱 An inflation hedge that grows
Gold might be the classic inflation hedge, but US stocks have a trick up their sleeve: flexibility. Companies in the stock index can raise prices to keep profits up even when costs are rising. So instead of just “hedging,” US stocks offer a chance for real growth while staying resilient against inflation.
In summary, US stocks are a gateway to long-term economic growth, compounding returns, and built-in resilience. Even for short-term trades, going long on the index might offer a statistical edge.
Ready to dive in? Instant Funding gives you access to three major US indices:
- S&P 500 – A true heavyweight, covering 500 of the biggest US companies and capturing the US economy in a snapshot.
- US30 (Dow Jones) – The classic blue-chip index, featuring 30 key players across major industries.
- US100 (NASDAQ) – Tech-heavy and forward-thinking, this index captures the energy of leading innovation-driven companies.
For those looking to go global, there are also popular international indices: UK100, the cornerstone of the British market; GER40 (DAX), Germany’s finest; JPN225 (Nikkei), Japan’s top firms; and ASX200, Australia’s leading stocks.
