Chart in Focus
Capital Ideas
Investment insights from Capital Group
Categories
U.S. Equities
Valuations are high but may be justified
After a nine-year bull run, equity valuations have risen above long-term averages. But considering that bond yields remain low by historical standards, current levels may not be as excessive as they first appear. Strong earnings and global economic growth also provide an attractive backdrop for companies. However, if rates move substantially above 3%, equity prices could be pressured. Especially while valuations elsewhere in the world remain low on a relative basis, it may be time to consider rebalancing portfolios toward non-U.S. markets.
Learn more about
Past results are not predictive of results in future periods.
Our latest insights
-
-
Economic Indicators
-
Demographics & Culture
-
Emerging Markets
-
Related Insights
-
Asset Allocation
-
-
Chart in Focus
Never miss an insight
The Capital Ideas newsletter delivers weekly insights straight to your inbox.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses.
This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.