Cumulative Total Returns Since Pre-Recession Peak
Sources: RIMES, Standard & Poor’s as of 9/30/17.
The U.S. stock market has soared since the end of the global financial crisis, matching its prior peak in 2012 and more than doubling since then. But not all areas of the market have reached elevated heights at the same time. The stunning gains of a number of the largest technology and consumer discretionary companies, such as Alphabet, Amazon, Apple and Facebook, have gotten much attention and can be partly justified by dominant competitive positions and robust growth rates.
Financials recently reached its prerecession peak after 10 years and energy has returned to 2007 levels. The global financial crisis generally hit financials stocks the hardest, and the sector declined nearly 80% following its peak in May 2007. Given the sector’s slower recovery, it may still have more room to run. Further Fed rate hikes could provide another boost to the industry. With respect to both financials and energy, select companies are likely to fare better than others, so fundamental research will be key to identifying potential winners.
Any reference to a company, product or service does not constitute endorsement or recommendation for purchase and should not be considered investment advice.
American Funds are intended only for persons eligible to purchase U.S.-registered mutual funds.
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.
Securities offered through American Funds Distributors, Inc.
Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.
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 should not be considered advice, an endorsement or a recommendation.