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a resielient u.s economy

US economy has stepping into the phase of recovery after the crisis. US is in the midst of the longest streak of job growth on record. U.S. businesses have added 15.6 million jobs since early 2010. The unemployment rate has been cut by more than half from its peak, falling much faster than economists expected. Rising home prices have brought millions of homeowners back above water. US has cut budget deficit by two-thirds as a share of the economy. In 2015, median household income rose at the fastest rate on record, with the typical family earning an additional $2,800. The poverty rate fell by more than any year since 1968. And data indicate that these gains have continued in 2016, with wages rising over 2.7 percent at an annual rate so far this year, much faster than inflation.

US Stock Market

2017 witnessed many records of stock market being broken. By the end of November, S&P 500 increased by 16.35%, Dow increased by 19.89% and NASDAQ increased by 27.32%. All three indices have not only become higher than the peak of 2007, but also broke the records of the 2000 Internet Bubble.Although the average index performance may be worse than other markets like Hong Kong, which increased by 33.69% in 2017. However, there are plenty of stocks in US market performing magnificently. For example, Alibaba has increased more than 110%, Apple has increased 49.01% and 58.37% for Amazon. US market is a mature market, it has clear policies for dividends and is a great attraction for investors from all over the world. However, the valuation of US market is already historically high so whether it is a good time to enter remains to be a question.

 

Sectors and Stocks with Prospects

Lately, there has been great emphasis on certain sectors in order to create more jobs. Donald Trump, the president of the United States has always been interested in improving and promoting the infrastructure of the country. The emphasis on the infrastructure will certainly help the growth of the industry. The Energy sector is another area that is gaining favourable outcomes and regulations by the Trump administration. The Trump administration has already lifted various restrictions as a consequence of “An America First Energy Plan“ to encourage the development of oil and gas industry. 

Apart from the U.S. companies, there are plenty of other good choices among the listed companies. Several Chinese companies have had tremendous growth. JD has been showing a constant revenue growth (higher than 50%), above the average market growth rate of 30%. With its unique advantage in logistic services, it is not hard to believe that it's market share will keep growing. Other U.S listed Chinese companies showing great future growth potential are Netease and C-trip. 

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