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United States

INVESTMENT INSIGHTS  | 
January 2016
 |  FEATURING Kevin G. Clifford & Timothy D. Armour

Opportunities in 2016 Amid Bumpy U.S. Recovery

American Funds portfolio manager Tim Armour discusses his outlook for the U.S. economy and U.S. company growth.

Watch Video (2:08)

Stock and Oil Prices Decline Price Returns Since 12/22

Source: RIMES
Equity markets were led lower by the route in China’s stock market, which declined steadily from its recent peak on Dec. 22, 2015. Crude oil has also fallen on fears of oversupply and slackening demand.

  • High levels of volatility expected to continue as markets adjust to slowing growth in China, lower oil prices and weak industrial activity.
  • While stock prices could fluctuate further, chances of a global recession or a financial crisis are low.
  • Modest expansion in developed economies will partly offset deceleration in China.
  • Equity valuations in Europe are attractive and leave room for potential gains.
  • M&A activity is supportive and there remain many areas of opportunity in financial markets.

Continue reading...

INVESTMENT INSIGHTS  | 
January 2016
 |  FEATURING Kevin G. Clifford & Robert W. Lovelace

U.S., China Trade Places as Global Growth Engine

Portfolio manager Rob Lovelace offers his perspective on recovery and growth in China, the U.S., Japan, Europe and the emerging markets.

Watch Video (3:27)

INVESTMENT INSIGHTS  | 
December 2015
 |  FEATURING Kevin G. Clifford & John H. Smet

Fed Set to Hike Rates but Stay Lower for Longer

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.

Watch Video (2:34)

INVESTMENT INSIGHTS  | 
December 2015
 |  FEATURING Diana Wagner

Obamacare Cost Pressures Yield Investment Opportunities

An investment analyst discusses the problem of high costs associated with the Affordable Care Act and the types of companies best positioned to capitalize on the solution.

Watch Video (3:16)

INVESTMENT INSIGHTS  | 
November 2015
 |  FEATURING Wesley K.-S. Phoa

Expect Tame Inflation for Foreseeable Future

A portfolio manager offers his outlook for inflation in the U.S., for both the short and long term.

Watch Video (1:38)

INVESTMENT INSIGHTS  | 
November 2015
 |  FEATURING Wesley K.-S. Phoa

What a Rate Hike Can Mean for Long-Term Yields

A portfolio manager discusses why interest rates have remained low in the U.S. and what to expect from yields when rates do rise.

Watch Video (2:08)

INVESTMENT INSIGHTS  | 
September 2015
 |  FEATURING Wesley K.-S. Phoa

What the Fed’s Wait-and-See Mindset Means for Investors

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.

Watch Video (4:01)

INVESTMENT INSIGHTS  | 
July 2015
 |  FEATURING Darrell R. Spence & Matt Miller

Bull Market’s Lifespan Comes Down to Fundamentals

An economist shares his view on today’s prolonged U.S. bull market and the conditions that could bring about its conclusion.

Watch Video (1:55)

INVESTMENT INSIGHTS  | 
July 2015
 |  FEATURING Darrell R. Spence , Wesley K.-S. Phoa & Matt Miller

Fed Weighs Market Jitters as It Ponders Rate Hike Timing

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.

Watch Video (3:15)

INVESTMENT INSIGHTS  | 
July 2015
 |  FEATURING Gerald Du Manoir , Wesley K.-S. Phoa & Matt Miller

Opportunities in Oil Companies That Can Weather Price Swings

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.

Watch Video (2:54)

INVESTMENT INSIGHTS  | 
July 2015
 |  FEATURING Darrell R. Spence , Gerald Du Manoir & Matt Miller

U.S. Valuations Should Be Judged in Broader Context

An economist and a portfolio manager discuss today’s U.S. valuation in the context of interest rates, prior bear markets and investment strategy.

Watch Video (2:44)

MARKET COMMENTARY  | 
June 2015
 |  FEATURING Richmond 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)

Consumer Areas Appear Expensive … With No Difference Among Companies Forward P/E ratios for select consumer industries over the prior 10 years (left) and valuation spreads for retail stocks (right)

Valuation spread measures the difference in average P/E ratios between the top and bottom quintiles of retail stocks in the Standard & Poor’s 500 Composite Index. Retail stocks include distributors, internet & catalog retail, multiline retail, specialty retail and food & staples retailing.

Sources: Capital Group, FactSet. As of March 31, 2015.


Summary

  • Consumer spending is likely to accelerate, supported by a healthy job market, improvements in U.S. housing and upward pressure on wages. This should benefit consumer stocks.
  • Valuations on consumer stocks are not cheap and rising rates could be a headwind. But there are many supporting factors as well.
  • The secular trend toward online shopping is disrupting many areas and is likely to generate new winners and losers — creating opportunities for stock pickers.
  • Restaurants, home improvement and grocery stores are some new areas where the disruptive impact of e-commerce is contributing to upheaval.

Continue reading...

MARKET COMMENTARY  | 
June 2015
 |  FEATURING Darrell R. 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  | 
May 2015
 |  FEATURING Darrell R. 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)


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.