In July 2026, global capital markets are seeking direction amidst turmoil. Despite continuous geopolitical and inflation noise, US stocks have shown amazing resilience—the S&P 500 index has accumulated gains of over 9% in the first half of the year, and the Nasdaq index has broken through the 20,000-point historical barrier. Many investors can't help but ask: in global asset allocation, why are US stocks always an option that cannot be ignored? This article will analyze the underlying logic of buying US stocks from five dimensions, combined with the latest market data.
1. Long-Term Returns: A Global Model of Compound Interest
From 1926 to the present, the annual return of the US stock market has been about 10%, significantly higher than other major global markets. Even experiencing the Great Depression, oil crises, the internet bubble, and the subprime mortgage crisis, US stocks have always created new highs with strong self-repair capabilities. In the first half of 2026, over 70% of S&P 500 constituents achieved profit growth, and corporate buyback sizes expanded simultaneously, providing solid fundamental support for index gains.
Historical data shows that long-term holding of US stock index funds is an effective path for ordinary investors to accumulate wealth. Taking the past twenty years as an example, the cumulative return of the S&P 500 index has exceeded 300%, far exceeding most developed and emerging markets in the same period.
2. Gathering Place of Global Leading Enterprises
Among the top ten companies globally by market value, eight are listed in the US, covering core sectors such as technology, consumer, healthcare, and finance. Tech giants like Apple, Microsoft, NVIDIA, and Google's parent Alphabet continue to innovate, not only leading global industrial changes but also bringing generous returns to investors. In Q2 2026, the tech sector's profits grew 18% year-on-year, with the explosion of AI computing demand becoming the strongest growth engine.
In addition to technology, US stocks also gather the world's best companies in cutting-edge fields such as biotechnology, aerospace, and new energy, providing investors with opportunities to share global innovation dividends.
3. Institutional Advantages: Transparency, Rule of Law, and Liquidity
The US stock market has the world's most mature regulatory system, with strict information disclosure requirements and severe penalties for insider trading and financial fraud, providing a relatively fair trading environment for ordinary investors. At the same time, the rules design of the US Securities and Exchange Commission (SEC) focuses on protecting small and medium-sized investors, such as delisting mechanisms, short-selling mechanisms, and class action systems, effectively curbing market manipulation.
Liquidity is another trump card of US stocks. Data shows that the average daily trading volume of US stocks exceeds $500 billion, with depth and breadth unparalleled globally. Whether it's blue-chip stocks or small-cap stocks, investors can enter and exit at extremely low costs, which is particularly valuable during crises.
4. Ballast Stone of Asset Allocation
When building a global investment portfolio, US stocks are often given the role of "core assets." On the one hand, US stocks have relatively low correlation with Hong Kong and A-shares, effectively diversifying single-market risks; on the other hand, the dominant position of the US economy in the world and the international reserve currency attribute of the US dollar make US stocks have a natural hedging function against exchange rate fluctuations.
In 2026, global institutional investors continue to increase their allocation to US stocks. Although Q2 net inflow data has sparked market discussion, more professional institutions believe that the profitability and dividend levels of US companies are still one of the most attractive return sources in global assets. For individual investors, allocating to US stock index funds through QDII or Hong Kong Stock Connect channels is a simple and efficient allocation method.
5. Current Valuation and Risk Warnings
As of the end of July 2026, the forward P/E ratio of the S&P 500 index is about 21 times, slightly lower than the five-year average of 22 times, with an overall valuation in a reasonable range. It is worth noting that the market's pricing of high AI growth expectations is relatively full, and tech sector volatility may increase. Investors need to pay attention to the Fed's interest rate path, corporate earnings guidance, and global demand changes.
Allocation Recommendations
- Long-term investors can regularly invest in S&P 500 or Nasdaq index funds to obtain market average returns.
- Aggressive investors can focus on structural growth tracks such as AI, semiconductors, and new energy, but need to control positions.
- Conservative investors can adopt a "core + satellite" strategy, with dividend stocks and utility stocks as the core, supplemented by a small amount of tech growth stocks.
In summary, the essence of buying US stocks is investing in the world's most innovative and institutionally advantageous economy. The market environment in 2026 is still complex, but the long-term allocation value of US stocks has not changed. Understanding its underlying logic, combined with your own risk preference and investment goals, can help you move steadily in the volatile market.
