The Smart Way to Protect Your Money When the Market Gets Bumpy
Have you ever been on an airplane when it suddenly starts to shake?
Your heart beats fast. The cabin rattles. It feels scary. But would you ever open the emergency door and jump out at 30,000 feet?
Of course not! That would be crazy. You know the shaking is just bumpy air. The plane is built to handle it, and it will land safely if you just stay in your seat.
Yet, when the stock market gets bumpy, many people do the exact same crazy thing. They get scared by bad news, panic, and pull all their money out.
But jumping out of the market during a storm is the biggest risk of all.
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.
Hey Malaysia! Welcome to At One Go Financial, where we break down complex financial concepts into simple, actionable steps.
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Financial Education: THE POWER OF COMPOUNDING | Investing & Wealth Building
