Capital Group portfolio manager Mark Brett and economist Jens Søndergaard, both based in London, discuss possible implications of the Brexit vote for the U.K., the European Union and investors.
China affairs specialist Andrew Dougherty shares his growth outlook for China as it makes the transition from an investment-based economy to a service-based economy.
Fixed-income portfolio manager John Smet discusses the economic conditions underlying the Fed’s anticipated interest rate hike and offers a likely trajectory for future increases.
MARKET COMMENTARY | December 2015
Global stocks produced mixed returns amid investor worries about sluggish economic growth and expectations for higher U.S. interest rates. European equities advanced on the promise of new monetary stimulus measures, however, U.S. stocks were flat and emerging markets retreated. Bonds also declined as Federal Reserve leaders indicated that a rate hike is likely in December. The dollar rose sharply against the euro and the yen.
MARKET COMMENTARY | November 2015
Global stocks rallied as central bank stimulus and rising M&A activity helped offset ongoing concerns about a slowing world economy. Energy and materials stocks led markets higher amid signs of stabilization in commodity markets. Information technology stocks also advanced on better-than-expected earnings from some bellwether companies. Bonds were generally flat, and the U.S. dollar rose against the euro and the yen.
MARKET COMMENTARY | October 2015
Global stocks tumbled amid increasingly alarming signs of an economic slowdown in China and uncertainty over U.S. monetary policy. Energy and materials stocks plummeted on worries about declining global demand for commodities. Defensive sectors, including consumer staples and utilities, generally held up better than cyclical stocks. Government bonds rallied and the U.S. dollar slipped against the euro and the yen.
A portfolio manager discusses the Fed’s decision to stand pat on interest rates in the context of the state of the U.S. economy, risks from abroad and implications for long-term investors.
MARKET COMMENTARY | September 2015
Global stocks plummeted as fears that China’s economy may be weaker than previously expected hit every sector of the markets. Financial and consumer discretionary stocks fell the most, particularly those with high exposure to Asia. Defensive sectors, such as utilities and telecommunication services, fared somewhat better. High-grade bonds were essentially flat amid concerns about rising U.S. interest rates. The dollar lost ground against the euro and the yen.
MARKET COMMENTARY | August 2015
Global stocks advanced amid improving economic data in the United States and an easing of the Greek debt crisis. Defensive sectors led markets higher as consumer staples, health care and utilities stocks rallied. Emerging markets stocks declined, weighed down by a sharp drop in Chinese shares and falling commodities prices. High-grade bonds gained from a flight-to-safety trade. The U.S. dollar rose against the euro, the yen and most other currencies.
Two portfolio managers discuss Europe’s progress in the recovery cycle and how currency and valuations shifts have created investment opportunities.
An economist and a portfolio manager discuss the factors the U.S. Federal Reserve may be considering as it decides when to raise interest rates.
Two portfolio managers discuss the lead up to the recent drop in oil prices and approaches to identifying investment opportunities in the energy sector in the current climate.
An economist and a portfolio manager discuss today’s U.S. valuation in the context of interest rates, prior bear markets and investment strategy.
MARKET COMMENTARY | July 2015
Global stocks produced mixed returns as signs of improving economic growth were offset by fears of rising interest rates and a worsening debt crisis in Greece. Telecommunications stocks proved to be a bright spot, driven higher by M&A activity, while the rate-sensitive utilities sector fell the most. Emerging markets stocks advanced, supported by monetary easing in China. Bonds declined and the dollar slipped 4% against the euro.
MARKET COMMENTARY | June 2015
Global stocks managed a slight gain as investors reacted to mixed reports about the pace of worldwide economic growth. Technology and health care stocks rallied, while the energy sector continued to feel the impact of volatile oil prices on corporate earnings. Japanese stocks advanced on improving economic data. Emerging markets declined amid fears of higher U.S. interest rates. Bonds declined and the dollar rose against the euro and the yen.
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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.