This archive report was first published on 23 June 2021.
On June 22, 2021, Adaptis Capital, a Kenyan investment management company, announced its intention to expand its footprint to the US, providing a platform for Kenyans to venture into the US stock market.
The US stock market is the largest in the world, with a total market capitalization of $49.1 trillion as of March 2021. The New York Stock Exchange (NYSE) and the Nasdaq Stock Exchange are among the most extensive in the world, housing shares and bonds of North American corporations and the world's most recognized brands, respectively.
According to Kenneth Mantu, CEO of The Adaptis Group, the strategic move will provide investors with the opportunity to invest in the world's largest economy, hedging against geopolitical and economic risks, and investing in the world's largest companies.
David Mwangi, Managing Partner of Adaptis Capital Inc, added that the move is a clear affirmation of Adaptis' vision of building today and funding tomorrow, providing unparalleled exposure to emerging market investors who want a slice of the market-beating returns provided by US companies.
While U.S. investment securities are regulated by U.S. law, there are no explicit provisions prohibiting non-residents from participating in the U.S. stock market. However, there are some extra hoops they may have to jump over before investing. It is advisable to consult with an investment firm and use the services of a professional.
According to Spendmenot Research, the US represents about 55.9% of the total global stock market capitalization, with 55% of US adults having a substantial allocation of their liquid portfolio in the said stock market.
