2024 MIDYEAR OUTLOOK
Economic outlook: U.S. powers global growth
Despite stubborn inflation and high interest rates, the U.S. economy is expected to expand this year at more than twice the rate of other major economies. What's more, American consumers are helping to support growth in the rest of the world. Here’s what to watch for in the months and years to come.
“People used to say if the U.S. sneezes, the rest of the world catches a cold. But the opposite is also true. When it’s firing on all cylinders, the U.S. can help other export-oriented economies.”
Darrell Spence, Economist
2024 Midyear Outlook webinar
What if the Fed doesn't cut interest rates this year?
What's right with the world
U.S. interest rates: Where do we go from here?
EQUITY OPPORTUNITIES
Stock market outlook: 3 themes for a broadening market
No rally lasts forever, but at midyear, equities across a broad range of markets and industries appear poised for accelerated earnings growth. Members of our investment team identify the tailwinds behind this and share three catalysts for potential long-term growth.
Sources: Capital Group, FactSet, Morningstar. Magnificent Seven stocks were the top seven contributors to returns for 2023 in the S&P 500 Index. The Magnificent Seven non-U.S. are the top seven contributors to returns for 2023 in the MSCI EAFE Index. Cumulative returns are indexed to 100 on January 1, 2022, and shown through March 31, 2024, and are calculated on an equal-weighted basis for the seven stocks within each group. Past results are not predictive of results in future periods.
The Long View: 4 megatrends to watch
The new reality of investing in 2024
Separating AI hype from investment opportunity
You've heard of the Magnificent 7, but do you know the Granolas?
FIXED INCOME OPPORTUNITIES
Bond outlook: Opportunities emerge as Fed delays rate cuts
Markets have slashed expectations for rate cuts to align to the Federal Reserve's forecast of one cut by year-end, but bonds still offer a sweet spot between high income and protection from equity market swings.
“Bond investors were too exuberant about rate cuts at the start of the year, but now that markets aren’t aggressively priced for cuts, valuations for fixed income are more attractive.”
Vince Gonzales, Fixed Income Portfolio Manager
Bond talk: Can credit markets continue to run strong?
Now may be the time for core bonds: Five themes for 2024
Municipal bonds remain attractive despite fading stimulus
Don't wait for a Fed rate cut: This chart shows why
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Past results are not predictive of results in future periods.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.
The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization-weighted index designed to measure developed equity market results, excluding the United States and Canada.
S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
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