Investment insights from Capital Group
Expect mixed results for global economic growth in 2024
Source: Capital Group. Country positions within the business cycle are forward-looking estimates by Capital Group economists as of October 2023. The size of the bubbles represents the approximate relative size of each economy and are for illustrative purposes only.
Interest rates today are within the range of historical norms
Sources: Federal Reserve, Robert Shiller. Data for 1871–1961 represents average monthly U.S. long-term government bond yields compiled by Robert Shiller. Data for 1962–2022 represents 10-year Treasury yields, as of 31 December each year within the period.
After Fed hikes ended, stocks and bonds have outpaced cash
Sources: Capital Group, Morningstar. Chart represents the average returns across respective sector proxies in a forward extending window starting in the month of the last Fed hike in the last four transition cycles from 1995 to 2018 with data through 30 June, 2023. Benchmarks represent US 3-month Treasury-bill (cash equivalents), Bloomberg US Aggregate Index (core bonds), S&P 500 Index (U. stocks) and a blend of the 60% S&P 500 Index and 40% Bloomberg US Aggregate Index (60/40 blend). Long-term averages represented by the average five-year annualized rolling returns from 1995. Past results are not predictive of results in future periods.
Red, blue and you: Party doesn't matter much for investors
Sources: Capital Group, Standard & Poor’s. Each 10-year period begins on January 1 of the first year shown and ends on 31 December of the tenth year. For example, the first period covers 1 January, 1936 through 31 December, 1945. Figures shown are past results and are not predictive of results in future periods.
Market Volatility
European Equity
U.S. Equities
Fixed Income
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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.