Investment Insights | American Funds

Investment Insights

INVESTMENT INSIGHTS  |  February 2018  |  FEATURING Jason Bortz

What 2018 Tax Reforms Mean for Investors

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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

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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INVESTMENT INSIGHTS  | 
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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For over 10 years, target date funds have been a Qualified Default Investment Alternative (QDIA) for defined contribution plans. Brad Vogt, American Funds portfolio manager and principal investment officer for American Funds Target Date Retirement Series® joined other investment professionals in an Asset TV Masterclass video to discuss target date funds, including:

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INVESTMENT INSIGHTS  | 
August 2017
 |  FEATURING Joanna F. Jonsson

CE Credit Video Excerpt: Building and Protecting Wealth Through Retirement

In this Video from the AssetTV Masterclass, American Funds portfolio manager Jody Jonsson explains why it is important for a target date fund to be designed to build and protect wealth through retirement.

Watch the full “Masterclass” video on Asset TV and earn continuing education credit.

Watch Video (2:28)

INVESTMENT INSIGHTS  |  July 2017

Market Levels Suggest It May Be Time to Rebalance

U.S. stocks have outpaced overseas markets. The resulting gap in valuations may have affected your portfolio’s asset allocation. As international stocks pick up steam, consider doing some rebalancing.

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What have we learned about target date funds in the 10 years since the Pension Protection Act took effect, driving a surge in target date assets? Brad Vogt, principal investment officer of American Funds Target Date Retirement Series®, provides some insights to help plan sponsors and advisors evaluate target date funds. He discusses:

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INVESTMENT INSIGHTS  | 
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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The outlook for emerging markets has changed. Materials and energy companies used to be key drivers of developing world markets. Now, the focus has shifted to technology and consumer companies that are benefiting from the rapid adoption of mobile phones, increasing internet use and rising wealth.

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INVESTMENT INSIGHTS  |  January 2017  |  FEATURING Joyce E. Gordon

Finding Income in a Low-Rate World

Historically low interest rates have put a damper on income for many investors. CDs, Treasury notes and other guaranteed investments, while once a source of modest income, have lagged over the years. For example, the typical five-year CD interest rate is 0.82%, and the five-year daily treasury yield curve rate is 1.83%.* That means many investors have had to adjust their expectations or look to other, more risky, investments to help them pursue income.

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INVESTMENT INSIGHTS  |  January 2017

The Future Is Now: Disruptive Technology Trends in 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.

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INVESTMENT INSIGHTS  |  December 2016

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

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. 

Although the target date funds are managed for investors on a projected retirement date time frame, the funds' allocation strategy does not guarantee that investors' retirement goals will be met. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. American Funds investment professionals manage the target date fund's portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date. 

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.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.

©2018 Morningstar, Inc. All Rights Reserved. Some of 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.