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Investment Insights

INVESTMENT INSIGHTS  |  February 2018  |  FEATURING Jason Bortz

What 2018 Tax Reforms Mean for Investors


This article was originally published on Dec. 20, 2017, and has been updated to reflect the bill's passage into law.

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U.S. Tax Reform: Six Key Takeaways

Sources: Capital Group estimates

This article was originally published on Dec. 20, 2017, and has been updated to reflect the bill's passage into law.

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INVESTMENT INSIGHTS  |  February 2018  |  FEATURING Mike Gitlin

Renewed Volatility Means It’s Time to Refocus on Fixed Income.

Key Takeaways

Mike Gitlin, head of fixed income at Capital Group, has 24 years of investment industry experience. He discusses the current market environment and what it means for bond investors.

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February 2018
 |  FEATURING Timothy D. Armour & Will McKenna

Capital Group's Tim Armour Addresses Market Volatility

Capital Group chairman and chief executive officer Tim Armour discusses the sudden return of volatility to the markets and provides helpful context for advisors and investors.

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INVESTMENT INSIGHTS  |  February 2018  |  FEATURING Timothy D. Armour

The Return of Market Volatility Is Expected and Healthy

Stocks have declined in recent days amid investor concerns about higher inflation and rising interest rates. In this interview, Capital Group Chairman and CEO Tim Armour discusses the drivers of this sudden downturn and his long-term outlook for the financial markets.

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INVESTMENT INSIGHTS  |  February 2018  |  FEATURING Jared Franz

Stocks Pull Back Amid Signs of Rising Rates and Higher Inflation

The equity market lost more than 8% in a few weeks’ time. This decline to the S&P 500 Composite Index, which began in late January, is the first of its kind since 2016. This volatility comes as investors come to terms with a new economic and investment environment of higher interest rates and rising inflation.

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INVESTMENT INSIGHTS  |  February 2018  |  FEATURING Michelle Black

Preparing Clients for Market Declines

One of the most noteworthy elements of the current bull market has been its remarkable tranquility. Currently in its ninth year, this advance has been marked by extremely low volatility with very few selloffs. It’s a historic rally: The Standard & Poor’s 500 has posted a positive total return in each of the past 15 months — a feat that’s occurred just once before, in 1960, according to S&P Dow Jones Indices.

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2018 Outlook: It’s Time for Balance and Flexibility

Despite the concerns surrounding financial markets, 2017 produced healthy returns. What will 2018 hold in store? In our 2018 Outlook, we give our perspective, including:

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March 2017
 |  FEATURING Will McKenna & Michael T. Kerr

A Glimpse Inside The Growth Fund of America’s Portfolio

Mike Kerr, a principal investment officer of The Growth Fund of America®, shares his thinking on industries and companies currently held in the fund, including technology, entertainment and health care.

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2017 Outlook

The uncertainty brought on by political shifts in the U.S. and Europe, paired with muted economic growth across much of the world, leaves many economies vulnerable to shocks. While the global economy is expected to continue on a path of low growth, there are a number of bright spots for investors. 

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January 2017
 |  FEATURING Kevin G. Clifford , Timothy D. Armour & Joanna F. Jonsson

Global Investment Themes to Watch in 2017

Capital Group portfolio managers Tim Armour and Jody Jonsson share their thoughts on the most compelling themes in U.S. and international investing in the year ahead.

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The Fed Raises Rates, With an Eye on Inflation

A year after the Federal Reserve boosted the key interest rate for the first time in nearly a decade, it has finally raised it again. The move is an indicator of the central bank’s confidence in the health of the U.S. economy. Specifically, it signals that Fed officials believe the labor market and inflation are on the right track. 

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Low bond yields have sent investors piling into higher yielding sectors like utilities, stretching the valuations of many high-dividend-paying stocks. How should dividend-oriented investors navigate this environment of lofty valuations and low yields? Alan Berro, Principal Investment Officer of Washington Mutual Investors Fund℠, gives his perspective on addressing this conundrum. In this Q&A, he discusses:

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 

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. This information is intended to highlight issues and not to be comprehensive or to provide advice. This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors. 

Standard & Poor's 500 Composite Index is a market capitalization-weighted index based on the average weighted results of approximately 500 widely held common stocks.

The Capital Group companies manage 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.

©2018 Morningstar, Inc. All Rights Reserved. Except for Lipper rating information, the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor the American Funds are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.

Past results are not predictive of results in future periods.