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.
MARKET COMMENTARY | September 2015 | FEATURING Theodore R. Samuels
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.
MARKET COMMENTARY | September 2015
MARKET COMMENTARY | September 2015 | FEATURING Timothy D. Armour & Rob Lovelace
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:
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.
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.
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.
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.
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.
MARKET COMMENTARY | May 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.
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.
Portfolio manager Jonathan Knowles discusses how investing in Africa presents challenges as well as significant opportunities.
MARKET COMMENTARY | August 2014 | FEATURING Jonathan Knowles
Exhibit 1: Many e-commerce companies have great growth potential as online sales are still a small percentage of total retail sales.
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:
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?
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.
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.
MARKET COMMENTARY | July 2014 | FEATURING Timothy D. Armour
World Market Returns (May 30, 2009 — May 30, 2014)
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?
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.
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.
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.
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