Investment insights from Capital Group
The Magnificent Seven and Nifty 50: We’ve seen this movie before
Sources: Capital Group, RIMES, S&P Capital IQ, Standard & Poor's. The analysis includes 41 companies among the list of "Nifty Fifty" companies for which market capitalization data exists continuously from 1964 to 1974, using both RIMES and S&P Capital IQ. The Nifty Fifty was a list of U.S. companies identified by Morgan Guaranty Trust whose valuation multiples traded at levels well above the S&P 500 given their perceived growth prospects at the time. The "Magnificent Seven" refers to the seven largest contributors to the S&P 500 in 2023. Company examples shown here for the Nifty 50 represent some of the largest companies in the group from various industries and are for illustrative purposes only. As of 31 December, 2023.
Interest rate hikes have not necessarily been bad for stocks
Sources: Capital Group, Federal Reserve, Standard & Poor's. S&P total returns during prior hiking cycles are based on the total return for the S&P 500 Index between the date of the first increase in the target federal funds rate and the date of the final increase in the target federal funds rate. The federal funds rate shown is the average monthly effective federal funds rate, which reflects the volume-weighted median interest rate that depository institutions charge each other for overnight loans of funds. As of 31 December, 2023. Past results are not predictive of results in future periods.
Market volatility in election years can present investment opportunities
Sources: Capital Group, Refinitiv Datastream, Standard & Poor’s. October 31 used as proxy for each election date. Past results are not predictive of results in future periods.
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.