US equities still offer opportunities for S'pore investors despite turbulence?

Market players see growth in sectors including healthcare innovation, financial services

- Chor Khieng Yuit

American share markets have had a bumper two years but they took a slide in February 2025 that continued into March.

There has been something of a recovery since March 13 but the on-again, off-again tariffs from US President Donald Trump are unnerving investors.

Dr David Kuo, co-founder of financial education site The Smart Investor, said US stocks have become too pricey: "You are talking about companies being valued at 50, 60, 70 times earnings."

He added that while these US firms may be good companies and there may not be similar stocks on other exchanges, an investor is still "not going to pay that amount of money for them".

Furthermore, if investors have made paper gains, it makes sense to sell some shares and take profit, he noted.

Despite the slowdown, the fundamentals of US equities "continue to show signs of strength", said Mr Hugh Chung, chief investment officer at digital wealth platform Endowus.

"The large-cap tech sector is likely to post double-digit earnings growth, while small caps are finally turning the corner on earnings growth in 2025," he added.

However, there are headwinds that could derail the market's trajectory. Besides the uncertainty around tariffs and escalating trade tensions, markets are confronting the risk of stagflation—slow economic growth amid high levels of inflation and unemployment.