The 5 Reasons the US Stock Market is Failing Malaysian Investors

Why I’m EXITING the US Market (And You Should Too) 📉

For decades, the US market was the gold standard. But in 2025, the cracks are showing. For the average Malaysian investor, the "Land of Opportunity" is starting to look like a high-priced trap.

1. The Valuation Gap: US vs. The World

The US market is currently trading at 30 times full-year earnings. To put that in perspective, its historical average is 15. Meanwhile, the Hong Kong market is trading at a modest 13 times. You are essentially paying double for US stocks that have lower growth prospects than their Asian counterparts.

2. The Invisible Tax "Theft"

If you own stocks like Apple or JPMorgan, you’ve likely noticed 30% of your dividends missing. That’s the US Dividend Withholding Tax for foreigners. But the real "red flag" is the US Estate Tax. If a Malaysian investor passes away, the US government can claim up to 40% of their US portfolio. In contrast, Singapore and Hong Kong have 0% estate tax.

3. The Rise of the East

While the US grapples with $38 trillion in debt, China is pivoting toward the future. By focusing on green energy, semiconductors, and AI, companies like BYD are challenging giants like Tesla. When you compare BYD (priced at 1x sales) to Tesla (15x sales), the overvaluation of the US market becomes undeniable.

4. The Currency & Political Gamble

With the US printing money at record rates, the US Dollar is facing significant depreciation risk. Central banks are already swapping USD for Gold. Combine this with the volatility of a potential Trump presidency and new tariffs, and the "safety" of the US market vanishes.

Practical Advice for Malaysians

If you aren't comfortable with high political and forex risks, it’s time to look closer to home. Diversifying into the Malaysian or Singaporean markets can provide tax-free dividends and more stable long-term growth.

Don't wait for a crash to protect your wealth. Secure your financial future here.