Investment insights from Capital Group
Sources: Capital Group, MSCI. Relative P/E (price to earnings) ratio reflects the ratio between the forward 12-month P/E ratios of the MSCI ACWI SMID Cap Index and the MSCI ACWI Large Cap Index. Annualised standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. As of 30 September 2024.
Sources: RIMES, Standard & Poor's. As of 30 September 30, 2024.
Sources: Capital Group, Bloomberg Index Services Ltd., Morningstar, Standard & Poor's. Return calculations reflect annualised total returns over periods in which the US Federal Reserve had stopped raising rates and began to actively cut rates, measured from the peak US Federal Funds rate target to the lowest Federal Funds rate target for each cycle. Specific easing cycles include August 1984 to August 1986 (non-recessionary), May 1989 to September 1992 (recessionary), February 1995 to January 1996 (non-recessionary), March 1997 to November 1998 (non-recessionary), May 2000 to June 2003 (recessionary), June 2006 to December 2008 (recessionary), and December 2018 to March 2020 (recessionary). 60:40 returns are represented by the weighted average returns between a theoretical 60% allocation to the S&P 500 Index and a 40% allocation to the Bloomberg US Aggregate Index. Cash returns are represented by the average investment rate of 3-month US Treasury Bills. As of 30 September 2024.
Market Volatility
European Equity
U.S. Equities
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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.