INVESTMENT INSIGHTS | January 2017
As innovation continues to create new markets and challenge existing industries, Capital Group investment professionals share their insights on how disruptive technology can benefit investors in 2017.
INVESTMENT INSIGHTS | October 2016
Consumer spending, long a driver of the global economy, is undergoing sweeping change. Whether it’s housing for millennials or health care for baby boomers, a significant shift in the way people spend money is underway in both advanced economies and the developing world.
INVESTMENT INSIGHTS | April 2016 | FEATURING Michael T. Kerr
The United States’ economy is in the midst of an extraordinary transformation, one that has the power to redefine America’s future. Across the country, the nation’s resilience in the face of adversity and its entrepreneurial spirit are providing unprecedented opportunities for companies and investors.
American Funds portfolio managers Tim Armour and Rob Lovelace discuss investment opportunities in the emerging markets, oil and commodities, health care and pharmaceuticals, and the internet.
An investment analyst discusses the problem of high costs associated with the Affordable Care Act and the types of companies best positioned to capitalize on the solution.
INVESTMENT INSIGHTS | October 2015 | FEATURING Timothy D. Armour
The face of the world’s media market is changing. Advertising dollars are increasingly flowing from traditional ads to digital. Increased spending on mobile, social media and digital video propelled U.S. digital advertising revenue to $49.5 billion for the full year of 2014, a 16% increase over 2013.
INVESTMENT INSIGHTS | October 2015 | FEATURING Jim S. Kang
One need not look too far these days to find an example of how innovation can transform an industry. The charts above show a remarkable array of change, some of which are still evolving. Many gamers now play on mobile devices, not consoles. Most pictures are taken on phones, and most point-and-shoot cameras have been put on the shelf.
INVESTMENT INSIGHTS | October 2015
How people consume news has undergone a sea change. More people now get their news from digital sources than they do from either print newspapers or the radio, and digital is starting to make a move on TV as the dominant place people go for news.
INVESTMENT INSIGHTS | October 2015 | FEATURING Brad Barrett
In 2013, Grand Theft Auto V became the fastest-selling entertainment product of all time, with sales of $1 billion in just three days. That probably disabused most people of the notion that video games were kid stuff.
INVESTMENT INSIGHTS | October 2015 | FEATURING Andrei Muresianu
Netflix can seem like a juggernaut. The company recently reported that it had 65.6 million subscribers at the end of the second quarter of 2015. Of those, 42 million are in the U.S. and another 23 million are international.
INVESTMENT INSIGHTS | August 2015 | FEATURING Shaw B. Wagener
Urbanization is nothing new. It’s been going on for centuries, and it helped make Europe and the United States global economic and political powers. But what is different about today’s wave of urbanization is its unprecedented speed and scale — it’s bigger and faster than ever.
INVESTMENT INSIGHTS | August 2015 | FEATURING Joanna F. Jonsson
Per Capita GDP Has Risen in Tandem With Increases in the Urbanization Rate
Urbanization isn’t a modern phenomenon. In centuries gone by, the shift to living in cities underpinned the industrial revolutions of Europe and the United States and the rise of those regions to global economic and political power.
INVESTMENT INSIGHTS | August 2015 | FEATURING Joanna F. Jonsson
2014 Was the “Tallest Year Ever,” With the Completion of a Record 97 Buildings Above 200 Meters
Elisha Otis founded The Otis Elevator Company in 1853, but it was the company’s 1903 innovation called the gearless traction elevator that set in motion a remarkable change in the urban landscape.
INVESTMENT INSIGHTS | August 2015 | FEATURING Andrew H. Dougherty
Global Investment (Trillions), 2013–2030
Some countries need infrastructure that simply meets basic human needs, such as safe drinking water. Another may want to modernize its transportation network, and still others may be trying to lay the groundwork for future global competitiveness by building a national broadband network.
INVESTMENT INSIGHTS | August 2015 | FEATURING Todd M. Saligman
Airport Construction Projects Worldwide and Investment Amount (in Billions)*
China started working on a new airport near Beijing on December 26, 2014. The airport, which is being designed by Netherlands Airport Consultants, is expected to be completed in 2018 and cost about
$14 billion. Upon completion, the 7.5 million square foot terminal will accommodate about 45 million people per year.
INVESTMENT INSIGHTS | August 2015 | FEATURING Gregg E. Ireland
Africa provides one of the classic examples of technology trumping traditional infrastructure. The introduction of mobile phones has allowed millions of Africans to receive the social and economic benefits of telephone networks without the sunk cost of massive landline infrastructure.
An investment analyst discusses the great strides seen in health care innovation and outcomes in recent years, but wonders whether the U.S. economy can support the proliferation of new drugs soon to be on the market.
INVESTMENT INSIGHTS | May 2015 | FEATURING Johnny Chan
Mobile payments see growing acceptance as volumes surge
Cash or check? How about smartphone. In 2014, customers in U.S. retail stores made an estimated $5.5 billion in purchases using a mobile device. That’s only about 0.1% of the nation’s sales. In 2019, however, shoppers are expected to spend an estimated $819 billion using a mobile device, or about 15% of sales, according to researchers at BI Intelligence.
INVESTMENT INSIGHTS | May 2015 | FEATURING David Carpenter
Music Downloads Top the Charts
Yes, sales of vinyl records are surging — nearly 10 million old-fashioned platters were sold in 2013, the most since 1997. Who’s buying records? Mostly hipsters into indie-rock, and diehard audiophiles who contend vinyl recordings sound better than digital (among recent bestsellers on vinyl: Jack White’s Lazaretto and Beck’s Morning Phase). While it’s nice for old times’ sake to see vinyl win a battle, the war over how we listen to music may be over, and if digital hasn’t already won, the others may be down for the count.
INVESTMENT INSIGHTS | May 2015 | FEATURING Richmond Wolf
Renewed focus on research and technology boosts biopharma revenue growth
Cancer has a cloaking mechanism that’s so efficient the immune system can’t see the disease. That cloak of invisibility, however, may soon be pulled away thanks to revolutionary new approaches in immuno-oncology, which harnesses the patient’s own immune system to recognize and fight cancer.
INVESTMENT INSIGHTS | May 2015 | FEATURING Nicholas J. Grace
Sampling of companies that have entered and exited the S&P 500 Index, 1979–2015
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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.
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.
Past results are not predictive of results in future periods.