New data published by the Investment Association shows that the average percentage of UK money invested across the Atlantic has doubled over the last 10 years, up from 20% to 40%.
The US stock market has no equivalent anywhere in the world, and is estimated to be bigger than the next nine largest equity markets combined. Much of this growth is due to tech, and specifically the emergence of artificial intelligence and semiconductors. It has never been cheaper to invest in NASDAQ, which is where technology shares are listed. Whilst individual US shares tend to be more expensive than in the UK, some platforms permit the purchase of fractions of shares.
Those investment planning in Oswestry may be wondering about the security of American stocks in 2026 amidst continuing rumours of the so-called ‘AI bubble’ bursting. Financial analysts say the key to minimising exposure to falls is in being smart about how you include the US in your diversified portfolio. This means ensuring you have the right balance of AI-driven and non-tech stocks, and being aware that a US market reliant on foreign capital might struggle to maintain its current growth trajectory. It is worth recalling that people once flocked to Japanese equity markets before they entered long-term decline.
This is why it is important to understand best practice when investing in US stocks. There are still potentially rich returns to be made, but they come with a currency risk attached, as they are priced in US dollars.
