Investment insights from Capital Group
Major stock markets have soared more than 25% from bear market lows
Sources: Capital Group, MSCI, Refinitiv Datastream, Standard & Poor’s. Data calculations reflect total returns in USD. Price-to-earnings-per-share (P/E) multiples are calculated on a forward 12-month basis. Current price to earnings (P/E) ratio is a metric widely used to determine whether a company is overvalued or undervalued. It is calculated by dividing the company's current share price by earnings per share. Data as of June 30, 2023. The bear market in the S&P 500 that began on January 3, 2022, reached its lowest point, or market cycle bottom, on October 12, 2022. Past results are not predictive of results in future periods.
Investors’ flight to cash has been followed by strong returns
Sources: Capital Group, Bloomberg Index Services Ltd., Investment Company Institute (ICI), Standard & Poor’s. As of June 30, 2023. Past results are not predictive of results in future periods.
The broader S&P 500 has shown solid gains after a narrow market rally
Sources: Capital Group, Refinitiv Datastream, Standard & Poor’s. Significant declines in market breadth are measured as dates upon which the ratio of the S&P 500 Equal Weight Index to the S&P 500 Index falls below the first quintile, or 20%, of the total range between 12/31/2004 and 7/5/2023. The value of the S&P 500 Equal Weight Index reflects the simple average of price changes across every index constituent, while the S&P 500 Index applies a weighted average based on market capitalization. As a result, a declining ratio between the S&P 500 Equal Weight Index and the S&P 500 Index reflects a higher concentration of positive returns among a smaller number of index constituents. The forward return averages above are calculated based upon the dates that fall within the bottom 20% of the range (first quintile) in which market leadership has been most concentrated. Past results are not predictive of results in future periods. As of July 5, 2023.
Market Volatility
European Equity
U.S. Equities
Sign up now to get industry-leading insights and timely articles delivered to your inbox.
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.