Investment insights from Capital Group
Historically, income has dominated long-term total return
Source: Bloomberg Index Services Ltd. As of 30/12/22. Past results are not predictive of results in future periods.
Some notable asset bubbles over the last 40 years
Sources: Capital Group, ICE Benchmark Administration Ltd, London Bullion Market Association (LBMA), NASDAQ, Nikkei, NYSE Arca, NYSE, Refinitiv Datastream, Standard & Poor's, Stock Exchange of Thailand (SET). Figures reflect cumulative price changes over 8-year periods in which the asset's price increased at least 250% before falling at least 50 percentage points. Benchmarks used: gold bullion price per troy ounce as quoted by the LBMA (gold); Nikkei 225 Index (Japan); Bangkok SET Index (Thailand); NASDAQ Composite Index (U.S. tech); S&P Homebuilders Select Industry Index (U.S. housing); NYSE Arca Biotech Index (biotech); NYSE FANG+ Index (U.S. large cap internet). As of 31 December, 2022.
John Smet in the trading room, 1986.
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Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
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. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.