Invest in U.S. Equities

From Rescue to Recovery,
Transformation to Growth. 

Why U.S. Equities

The impact of the global pandemic opened new opportunities for equity investors. Coupled with high savings rates, some of this growth will be driven by pent-up consumer demand. Many digital behaviours pursued during the pandemic — like remote work or a hybrid office/home model — is expected to continue long after the economy fully reopens.

Sharp Economic Rebound is Expected in 2021

Although the U.S. economy contracted by 3.5% last year amid COVID-19 fallout, the International Monetary Fund and World Bank project a stronger growth for 2021 and a sharp recovery is to be expected.1

Pent-Up Savings will be Huge Growth Driver

Household excess savings is amounting to 12% of U.S. GDP.2 The pent-up savings coupled with suppressed consumer demand will be a huge growth driver. 

Corporate Earnings Roar Back

In Q1 2021, S&P 500 reported the highest Year-on-Year earnings growth for the past 11 years, with the highest contributor from Consumer Discretionary out of all 11 sectors.3 

Quick Facts

Fact #1

United States is the largest consumer market in the world.4

Fact #2

7 out of top 10 Most Innovative Companies are headquartered in United States.5 

Fact #3

Apple created new USD2 trillion market cap milestone as the largest company in the world.6 

100 days ago, America’s house was on fire.
After 100 days of rescue and renewal, America is ready for takeoff. Turning peril into possibility, crisis to opportunity, setbacks into strength.

Joe Biden
46th & Current President of the United States7


Towards a sustainable and resilient recovery – Build Back Better is President Biden’s 3-part agenda to Rescue, Recover and Rebuild the country.

Find out more from the infographic below.

PRESIDENT BIDEN’S 100-DAY REPORT CARD


What are the Sectors to Look Out for?

Technology

Tech opportunities abound amid economic reopening - solid exposure to strong secular opportunities relating to the digital transformation (DT) theme, which is just getting started, could also prove to be a solid cyclical winner with high leverage to post-pandemic reopening and infrastructure investment activity.

Health Care

On top of a growing demand for improved health care services, treatment and access, the pandemic has underscored the importance of health care system. Exciting opportunities up ahead, with game-changing breakthrough in genomic advancement which allows for faster time to market for vaccines, as well as higher R&D efficiencies.

Consumer Discretionary

Against the backdrop of high personal savings rate (estimated USD2.6 trillion of excess savings²), reopening of economies around the world can unleash consumer demand and potentially lead to great investment opportunities in the consumer sectors.

Financials

Cashless payment systems, mobile banking and challenger banks have been widely accessible to consumers pre-COVID, these contactless habits and mobile remittance services will continue to stay and gain market share post-pandemic.

Grant Bowers, Portfolio Manager of Franklin U.S. Opportunities Fund, shares his outlook on U.S. equities on BFM 89.9.

Invest in U.S. Opportunities

Capturing Mega Growth Opportunities across Multi-Cap Multi-Industry

U.S. Opportunities

Invests in highest-quality growth company located in the U.S. 

Learn more


Other Investment Themes

Next Steps

Speak to a relationship manager at any of our participating distributors.

Cimb
Citi
hongleong
HSBC
SC

Insights