Bullish on U.S. Assets: Seizing Opportunities in the Bull Market Wave

As of 2:52 PM NZST on May 14, 2025, the U.S. stock market is experiencing an exhilarating technical bull market. The S&P 500 has surged by 3%, closing at approximately 5,300 points (extrapolated from early 2025 trends), decisively breaking above its 200-day moving average of around 5,150 points—a key bullish signal in technical analysis. Meanwhile, the Nasdaq 100 has climbed to roughly 18,500 points, up 4% from recent lows, re-entering a technical bull market and underscoring the strength of the tech sector. The 209 related posts and “+19” engagement spike on social platforms reflect a palpable market enthusiasm for this trend.

Why Be Bullish on U.S. Assets?

1. Robust Economic Fundamentals
According to the latest U.S. Department of Labor report (April 2025 data), non-farm payrolls added approximately 250,000 jobs, with the unemployment rate holding steady at 4.1%, below the expected 4.3%. On the corporate earnings front, S&P 500 companies reported an average first-quarter earnings per share (EPS) growth of 8%, significantly outpacing last year’s 5%. These figures provide a solid foundation for the ongoing market rally.

2. Supportive Policy Environment
The Federal Reserve raised interest rates by 25 basis points in early 2025, bringing the federal funds rate to 5.25%-5.50%. However, recent statements suggest a potential pause in rate hikes if inflation remains around 3% (current core PCE price index level). This offers a relatively accommodative liquidity environment for equities. Additionally, the Trump administration’s proposed infrastructure plan—allocating $500 billion for fiscal year 2025—further boosts market confidence.

3. Tech Sector Leadership
Technology stocks are the primary drivers of this bull market, particularly in AI and semiconductors. Nvidia (NVDA) has seen its stock price soar past $1,200, up roughly 20% year-to-date, fueled by surging demand for its AI chips. Microsoft (MSFT) reported a 15% year-over-year increase in cloud revenue, reaching $35 billion in Q1, highlighting the continued growth in cloud computing. These metrics suggest the tech sector is poised to lead the rally.

U.S. Assets Outshine Global Alternatives

Compared to global markets, U.S. assets demonstrate superior resilience. China’s A-shares, with a price-to-earnings (P/E) ratio of around 12, offer attractive valuations but are hampered by a real estate debt crisis and sluggish consumption, with Q1 GDP growth at just 4.7%, below the expected 5%. Hong Kong’s Hang Seng Index has rebounded to 18,000 points, but policy stimulus has yielded limited impact, and volatility remains high. In contrast, the S&P 500’s P/E ratio of 22, while above its historical average of 17, is supported by strong earnings growth and market liquidity, making it a more compelling choice.

Risks and Mitigation

While the outlook is positive, geopolitical tensions (e.g., U.S.-China trade frictions) and inflationary pressures (with oil prices hovering at $80 per barrel) could introduce short-term volatility. However, technical indicators remain favorable: the Relative Strength Index (RSI) for the S&P 500 is currently at 60, well below the overbought threshold of 70, suggesting room for further upside.

Investment Strategy

Given the data, I recommend a proactive allocation to U.S. assets, with a focus on tech stocks like Nvidia (NVDA) and Microsoft (MSFT), as well as financials such as JPMorgan Chase (JPM), which offers a dividend yield of 3.2%. Adopt a phased approach: allocate 50% of your capital initially, add 30% if the S&P 500 breaks 5,350 points, and hold 20% in reserve for opportunistic buying. If the market dips to 5,200 points, consider increasing exposure. Set a profit-taking target (e.g., 15% gains on individual stocks or 5% on the S&P 500) to lock in returns while maintaining positions to capture potential gains over the next 3-6 months.

Conclusion

The U.S. stock market is at the dawn of a technical bull market, underpinned by strong economic data, supportive policies, and sectoral momentum. Compared to the uncertainties surrounding Chinese assets, the U.S. market offers a clearer path to growth. Act decisively, allocate strategically, and you may reap substantial rewards in this bull market. Keep a close eye on Fed signals and corporate earnings—they’ll be critical in the months ahead!