Look to US market for capital gains, says S'pore investment guru

Pick firms offering reasonable valuations, high growth, strong free cash flow: Adam Khoo

- Ven Sreenivasan

The US market will continue to suck in liquidity and outperform all others in 2025 but investors must pick the right buys and stay invested for the longer term.

That is the advice of well-known Singapore investment guru Adam Khoo, whose Adam Khoo Learning Technologies Group is one of Asia's largest investor training and education companies.

"No one can predict the market, but if you are looking for growth and capital gains, you won't find anything close to the US market," he said. "The only other market that offers anything close to this kind of growth is India, but you have to contend with the potential depreciation of the Indian rupee."

Indeed, US equities remained a magnet for global capital flows throughout 2024, with around US$500 billion (S$680 billion) in inflows during the year. The S&P 500 had run up about 24 per cent for the year till Dec 30, while the Nasdaq was up by 30 per cent, and the Dow Jones was ahead by 13 per cent.

The S&P 500 has returned 58 per cent over the past two years, and 13 per cent annualised over the past decade.

Analysts said the surge underscores global confidence in the US economy and market, and has driven the Tina ("There is no alternative") narrative as Europe remains weak and China is mired in economic malaise.

But Mr Khoo, a millionaire who has made a fortune via savvy stock investments, sees more upside on Wall Street.

He advised investors to identify good companies offering reasonable valuations, high growth and strong free cash flow, and whose products will remain in demand over the coming decade.

"I buy into companies we cannot live without," he noted.

He reckoned that despite the sharp run-up, selected consumer discretionaries such as Nike, LVMH and Lululemon are still relatively cheap. US healthcare plays like United Healthcare, which have pulled back sharply in recent weeks, are also in his sights.