2018 Outlook: It’s Time for Balance and Flexibility | American Funds

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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:

  • While global economies continue to gain ground, market levels suggest a careful approach.
  • Elevated valuations underscore that research is critical to uncover value.
  • The rally in emerging market equities may have room to run.
  • Fed rate hikes don’t have to translate to bond losses.

Better Opportunities Might Be Found Outside the U.S.

This chart shows that the market capitalization of U.S. stocks is well above the country’s share of GDP, while the opposite is true in emerging markets.
This chart shows rocks stacked while balancing on a rocky shore.

Download our 2018 Outlook to learn more about the challenges and opportunities ahead for investors.

This chart displays the changing composition of emerging market equities, with tech stocks growing in influence.

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. 

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.