Economic Indicators
Categories
Market Volatility
Setbacks from shocks are often short-lived
Economic and political shocks occasionally grab headlines and send U.S. markets down sharply. In each of the events above, staying invested through the full decline and following year left investors with more capital than before the shock. Brexit is the most recent example, as the S&P 500 bottomed just four days after the decision and hit all-time highs shortly thereafter.
In recent weeks, higher-than-expected wage growth and consumer prices sparked concerns over the trajectory of inflation and interest rates. However, as investors have had time to digest the information, markets have already erased some of the declines. Of course there are no guarantees, but volatility may remain elevated in this environment, so maintaining a long-term perspective and riding out uncertainty could be the best course of action.
Learn more about
Past results are not predictive of results in future periods.
Our latest insights
-
-
-
Asset Allocation
-
-
Interest Rates
RELATED INSIGHTS
-
Market Volatility
-
Dividends
-
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.
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.