American Funds ®

  • Forms
  • MY ACCOUNTS
  • INVESTMENTS
  • INSIGHTS
  • PRODUCTS
  • PLANNING
  • SERVICE & SUPPORT

Market Commentary

MARKET COMMENTARY  |  December 2015

World Markets Review for November 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.

Continue reading...

MARKET COMMENTARY  |  November 2015

World Markets Review for October 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.

Continue reading...

MARKET COMMENTARY  |  October 2015

World Markets Review for Third Quarter 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. 

Continue reading...

MARKET COMMENTARY  |  September 2015  |  FEATURING Theodore R. Samuels

10 Observations About the Current Market Environment

Portfolio manager Ted Samuels puts the recent market volatility in perspective

One of my best pieces of advice for making it through volatile times in the market is to turn off the TV. After all, media commentators are focused on the here and now, not on how to build wealth over the long term. That said, periods of extreme market turbulence can be unnerving, so I would offer the following 10 observations about the current  conditions. 

Continue reading...

MARKET COMMENTARY  |  September 2015

Fed Rate Decision: Near-Zero For Now, But Higher Soon?

  • The Federal Reserve has decided to keep interest rates close to zero, as concern about global economic conditions cast a shadow over an otherwise fairly bright outlook for the U.S. economy.
  • Looking forward, the Fed is expected to raise rates gradually, and an increase of 0.25%, for example, would be unlikely to have a significant impact on the economy.
  • Over time, higher interest rates can be beneficial for bond investors, enabling reinvestment in issues offering higher yields.
  • Rising rates have a varied impact on stocks. Selective investors who emphasize company-specific research should continue to find attractive longer term income and return opportunities.

Continue reading...

MARKET COMMENTARY  |  September 2015  |  FEATURING Rob Lovelace & Timothy D. Armour

Q&A With Portfolio Managers Tim Armour and Rob Lovelace

Perspective on Recent Market Selloff Triggered by China Woes

Global stocks have tumbled in recent days amid investor concerns about slowing economic growth in China. A sharp decline in Chinese stocks and a surprise currency devaluation have further stoked fears that the outlook for China is deteriorating, and events there could hurt its global trading partners, including Japan, Europe and ultimately the United States. China lowered interest rates and eased reserve requirements on banks in an attempt to calm investors and stimulate the economy. Against this backdrop, portfolio managers Tim Armour and Rob Lovelace share their thoughts on the unfolding events:

  • China now accounts for roughly 15% of the world’s gross domestic product and therefore has a greater impact than ever before on the global economy.
  • The most significant catalyst of the selloff was China’s unexpected decision to devalue its currency, delivering a shock to financial markets.

Continue reading...

MARKET COMMENTARY  |  September 2015

World Markets Review for August 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. 

Continue reading...

MARKET COMMENTARY  |  August 2015

World Markets Review for July 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.

Continue reading...

MARKET COMMENTARY  | 
July 2015
 |  FEATURING David Carpenter

Bullish on U.S. Despite Headwinds From Europe, China

A portfolio manager discusses his investment strategy in light of headwinds from Europe, China and the oil markets that pose a threat to the momentum of U.S. investing.

Watch Video (2:12)

MARKET COMMENTARY  |  July 2015

World Markets Review for Second Quarter 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.

Continue reading...

MARKET COMMENTARY  | 
June 2015
 |  FEATURING Rich Wolf

A Renaissance for Health Care, but Can Economy Keep Up?

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.

Watch Video (2:03)

MARKET COMMENTARY  | 
June 2015
 |  FEATURING Darrell Spence

U.S. Economy on a Roll

An economist shares his positive outlook for the U.S. economy, given the low debt burden, upswing in housing activity and business investment, and other factors.

Watch Video (1:40)

MARKET COMMENTARY  |  June 2015

World Markets Review for May 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.

Continue reading...

MARKET COMMENTARY  | 
May 2015
 |  FEATURING Anne Vandenabeele

How Abenomics Can Help Japan

An economist outlines four ways in which Abenomics is designed to help the Japanese economy and assesses the likelihood of long-term success.

Watch Video (3:35)

MARKET COMMENTARY  | 
May 2015
 |  FEATURING Darrell Spence

Oil Prices a Boon for U.S. Economy

An economist discusses why he sees the recent drop in oil prices as good news for the U.S. economy, despite widespread macroeconomic weakness overseas.

Watch Video (2:14)

MARKET COMMENTARY  |  May 2015

World Markets Review for April 2015

Global stocks rose modestly amid a strong rally in the energy sector. Rising oil prices, surging M&A activity and central bank stimulus measures helped to support world stock prices despite a slowdown in U.S. economic growth during the first quarter. Emerging markets rallied as market observers pushed back the timing of an increase in interest rates by the Federal Reserve to later in the year. Bond markets declined and the dollar lost ground against the euro, the pound and most other currencies.

Continue reading...

MARKET COMMENTARY  | 
January 2015
 |  FEATURING James F. Rothenberg & Kevin G. Clifford

Jim Rothenberg on the Year Ahead

A portfolio manager discusses the U.S.’s return to world economic dominance, the positive implications of a rise in interest rates, how he sees today’s market volatility as a plus, the importance of maintaining equity exposure outside the U.S. and the potential benefits of opening a 529 college savings plan.

Learn more about the late Jim Rothenberg, former Chairman, Capital Group Companies.

Watch Video (10:49)

MARKET COMMENTARY  | 
August 2014
 |  FEATURING Jonathan Knowles

Despite Challenges, Investment Opportunities Abound in Africa

Portfolio manager Jonathan Knowles discusses how investing in Africa presents challenges as well as significant opportunities.

Watch Video (2:10)

MARKET COMMENTARY  |  August 2014  |  FEATURING Jonathan Knowles

Finding Opportunities in the U.S. and Health Care

Exhibit 1: Many e-commerce companies have great growth potential as online sales are still a small percentage of total retail sales.

Source: U.S. Census Bureau. Data reflect quarterly estimates adjusted for seasonal variation but not for price changes.

Portfolio manager Jonathan Knowles shares his views on building concentrated portfolios and why he likes health care stocks. He talks about how U.S. companies are among the most disciplined in their capital allocation and why many of them tend to be great long-term investments. He also discusses:

  • What's still attractive in the U.S., despite the significant market run-up
  • The potential for banks in Ireland and Greece
  • Opportunities in India, Nigeria and South Africa
  • Areas of health care showing the greatest innovation
  • Favorable economics and pricing power of tobacco companies

Many investors believe that valuations in the U.S. are full. How do you currently view the U.S. market, especially relative to other markets on a global basis?

Continue reading...

MARKET COMMENTARY  | 
August 2014
 |  FEATURING Jonathan Knowles

Identifying Innovations in Health Care

Capital Group portfolio manager Jonathan Knowles discusses the opportunities for investing in global pharmaceutical companies.

Watch Video (2:15)

MARKET COMMENTARY  | 
August 2014
 |  FEATURING Jonathan Knowles

Investing in the U.S. as a Global Manager

Capital Group portfolio manager Jonathan Knowles discusses innovative companies such as Amazon, Google and LinkedIn, and where the opportunities are in the U.S. from a global perspective.

Watch Video (3:28)

MARKET COMMENTARY  | 
August 2014
 |  FEATURING Jonathan Knowles

On Running Concentrated Portfolios of 25 to 30 Stocks

Capital Group portfolio manager Jonathan Knowles discusses his focus on free cash flow and return on capital, and how they tie in with having a very concentrated portfolio.

Watch Video (1:15)

MARKET COMMENTARY  | 
August 2014
 |  FEATURING Jonathan Knowles

Outlook for India Is Better Following Elections

Capital Group portfolio manager Jonathan Knowles discusses the opportunities in India with the election of new Prime Minister Narendra Modi.

Watch Video (2:45)

MARKET COMMENTARY  |  July 2014  |  FEATURING Timothy D. Armour

Mid-Year Outlook: Can Stocks Sustain 2014 Gains?

World Market Returns (May 30, 2009 — May 30, 2014)

Exhibit 1: Stocks have produced remarkable returns during the past five years, rebounding from the financial crisis. However, investors should not expect double-digit gains to be the norm going forward.

Sources: RIMES, Capital Group.
Returns in U.S. dollars.

Portfolio manager Tim Armour discusses equity investing, the European economic recovery, his outlook for interest rates and pockets of value he sees in the market.

It has been more than five years since the financial crisis. We’ve experienced strong equity market returns, but a lackluster economic recovery. At the midpoint of 2014, where do you think we are in the recovery process and what is your outlook?

Continue reading...

MARKET COMMENTARY  | 
June 2014
 |  FEATURING Andrew H. Dougherty

China's Urbanization Plan a Chicken-or-Egg Proposition

A China affairs specialist details China’s urbanization plan and explains the nation’s property market problems — resulting in cities filled with empty buildings — as a matter of supply and demand.

Watch Video (2:15)

MARKET COMMENTARY  | 
June 2014
 |  FEATURING Andrew H. Dougherty

Debunking Some Misconceptions About China

A China affairs specialist details five key points that are commonly misunderstood about China, including its business cycles; its headwinds; and the importance of property, policy and politics.

Watch Video (3:59)

MARKET COMMENTARY  | 
June 2014
 |  FEATURING Darrell Spence

Drag-Free U.S. Economy Should See Growth Rise

An economist discusses the potential for the U.S. economy to break free of its sluggish post-recession growth now that headwinds such as government retrenchment and a weak European export picture have subsided.

Watch Video (2:41)


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 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. 

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.