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Posts From Capital Group

China: What could drive its markets in 2023?

China: What could drive its markets in 2023?

🕔14:04, 7.Feb 2023

As nearly three years of lockdowns come to an end in China, will 2023 be a turning point for equity investors? Without a doubt, China’s equity risk premium is higher than other markets. As investment professionals with more than 25

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The economy in 2023: Where we differ from market consensus

The economy in 2023: Where we differ from market consensus

🕔12:14, 3.Feb 2023

The wisdom of crowds can be powerful. But in times of heightened uncertainty, it can be helpful to understand potential risks. At the moment, markets appear to be crystallising around a hopeful outlook for 2023. Asset prices suggest inflation will

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Quick take: Europe – recession inevitable?

Quick take: Europe – recession inevitable?

🕔12:11, 2.Feb 2023

Last autumn, I thought we were on the verge of a significant recession across the major European economies. I expected real gross domestic product1 (GDP) to contract in the second half of 2022 and then fall in 2023 by 1-2%

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Outlook for bonds brighter; growth concerns linger

Outlook for bonds brighter; growth concerns linger

🕔16:09, 31.Jan 2023

Quarterly macro and market insights: Markets rebounded in the fourth quarter of 2022, closing a year marked by high volatility as the US Federal Reserve (Fed) reset its monetary policy path. US equities gained, credit spreads tightened and interest rate

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Japan outlook: forging economic resilience amid global headwinds

Japan outlook: forging economic resilience amid global headwinds

🕔08:19, 31.Jan 2023

The full reopening of Japanese borders has been a boon to businesses as the country comes to terms with the hard reality of co-existing with COVID. But with the world grappling with slowing growth and pressing concerns like geopolitical …

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The economy in 2023: Where we differ from market consensus

The economy in 2023: Where we differ from market consensus

🕔11:05, 30.Jan 2023

Jared Franz, for example, says the Fed will keep rates higher for longer, yet when the economy recovers, it will be stronger than prior rebounds. Meanwhile, Robert Lind argues that European policymakers will likely run looser fiscal policies and tolerate

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Securitised credit can be an important diversifier in bond portfolios

Securitised credit can be an important diversifier in bond portfolios

🕔08:31, 27.Jan 2023

As the risk of recession looms large over financial markets, how will securitised credit fare? It’s a growing area of bond markets that has become an important anchor of some actively managed, fixed income portfolios. Portfolio manager Xavier Goss discusses

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EMs with stronger fundamentals should see inflows when they resume

EMs with stronger fundamentals should see inflows when they resume

🕔10:03, 25.Jan 2023

The global environment led to sharp outflows from EM debt markets in 2022. The rise in US interest rates (and increase in EM inflation), combined with the increase in general risk premium, reduced the relative attractiveness of EM debt …

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EMD outlook for 2023: local currency yields offer protection in volatile conditions

EMD outlook for 2023: local currency yields offer protection in volatile conditions

🕔13:52, 24.Jan 2023

Key takeaways Global factors weighing on emerging market debt in 2022 look likely to continue in 2023, but high starting yields within EM local currency debt could help offset subsequent price volatility, while negative outcomes appear to be priced in

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Brazil presidential election outcome

Brazil presidential election outcome

🕔10:30, 24.Jan 2023

Below are some takeaways by Capital Group’s emerging market sovereign debt analyst Thomas Kontchou on important economic and policy considerations given the leftist candidate Luiz Inácio Lula da Silva’s victory in Brazil’s presidential election.  The leftist Workers’ Party candidate Luiz

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Long-term perspective on markets and economies

Long-term perspective on markets and economies

🕔10:09, 20.Jan 2023

Recessions are painful, no doubt about it. But they are necessary to clean out the excesses of prior growth periods, especially the more or less uninterrupted growth investors have enjoyed over the past decade.

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Targeting predictable outcomes to deliver on expectations

Targeting predictable outcomes to deliver on expectations

🕔16:29, 19.Jan 2023

Mike Gitlin, Capital Group’s head of fixed income, sets out the importance of investing in bond funds that deliver on their stated objective. He also explains what differentiates Capital Group from industry peers. We’ve heard you talk about the four

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World markets review – Fourth quarter 2022

World markets review – Fourth quarter 2022

🕔14:25, 16.Jan 2023

Global stocks rose as investors welcomed signs that inflation may have peaked in key markets around the world. Consumer price increases — while still high on a historical basis — moderated in the U.S., Europe and …

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Japan outlook: forging economic resilience amid global headwinds

Japan outlook: forging economic resilience amid global headwinds

🕔12:05, 13.Jan 2023

The full reopening of Japanese borders has been a boon to businesses as the country comes to terms with the hard reality of co-existing with COVID. But with the world grappling with slowing growth and pressing concerns like geopolitical …

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Outlook –  Long-term perspective on markets and economies

Outlook – Long-term perspective on markets and economies

🕔12:08, 2.Jan 2023

There’s a new reality taking shape in global markets. Many commentators are focusing on the rotation from growth to value, but I think that view is too simplistic. Some investors may be hoping for a return to normal after central

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How demographic challenges are shaping the China investment story

How demographic challenges are shaping the China investment story

🕔08:44, 30.Dec 2022

China’s once-in-a-decade census revealed some interesting demographic issues. The country has 264 million people aged 60 and above, which equates to 18.7% of the population, considerably higher than 13% in 2010. The 12 million births …

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Dividends: a strategy for all seasons

Dividends: a strategy for all seasons

🕔10:35, 27.Dec 2022

Growth strategies have long overshadowed dividend strategies. However, changing macroeconomic conditions have turned the tables and dividend investments are enjoying their time in the sun. While this coincides with value’s long-awaited comeback, value and dividend stocks have distinctive characteristics. We

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Why research is so critical when it comes to investing in China

Why research is so critical when it comes to investing in China

🕔08:15, 23.Dec 2022

Key takeaways  Chinese equities have had a volatile 2022 so far as the country has had to navigate COVID-19 restrictions, property debt concerns and supply chain constraints among many other headwinds China is becoming an increasingly selective market that requires

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Quick take: Five insights on Fed policy after the latest rate hike

Quick take: Five insights on Fed policy after the latest rate hike

🕔10:23, 22.Dec 2022

Capital Group portfolio managers consider the latest interest rate rise from the US Federal Reserve and what we can surmise from the slower pace of hiking.  The US Federal Reserve has slowed the pace of its interest rate hikes but

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Five things to know about the future of semiconductors

Five things to know about the future of semiconductors

🕔08:03, 20.Dec 2022

How fast things can change: there was a major shortage of semiconductors at the start of the pandemic, and now the industry is grappling with too much inventory in parts of the supply chain. This has led to a sell-off

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Clean hydrogen: Opportunities beyond the hype

Clean hydrogen: Opportunities beyond the hype

🕔08:36, 16.Dec 2022

Hydrogen can be used as a carrier of energy, and as an input into chemical and industrial processes. Clean hydrogen is, therefore, a crucial decarbonisation tool for a range of industrial activities including steel, aluminium, iron and chemical production. We

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Asian fixed income: Careful navigation required

Asian fixed income: Careful navigation required

🕔10:24, 13.Dec 2022

I am cautious on the Asian sovereign outlook due to tightening global financial conditions, weaker Chinese growth and rising regional inflation. Asian sovereign bonds are perhaps more resilient against these waves than many other regions due to the large pool

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The case for investment grade corporate bonds

The case for investment grade corporate bonds

🕔10:58, 9.Dec 2022

Key takeaways Investment grade corporate bonds could play a vital role in terms of adding balance and resilience as part of a core fixed income allocation within a balanced portfolio. The asset class has provided an attractive alternative to developed

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Investing in the fight against a worsening obesity epidemic

Investing in the fight against a worsening obesity epidemic

🕔15:40, 6.Dec 2022

Obesity has quickly reached global epidemic proportions over recent years with levels close to tripling since 1975. Despite the hugely detrimental impact this is having on people’s health and growing burden on healthcare systems around the world, however, medical intervention

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Is there a cure for current weakness in Chinese health care stocks?

Is there a cure for current weakness in Chinese health care stocks?

🕔10:00, 6.Dec 2022

Health care has been the worst-returning sector in China since the peak of the market last year. Behind this decline has been geopolitical tensions, macroeconomic risks and domestic policy. Long term, the outlook is still encouraging, however, with demographics supporting

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Recession watch: triggers, outlook and what next for central banks

Recession watch: triggers, outlook and what next for central banks

🕔10:05, 2.Dec 2022

While recession risk is clearly elevated around the world, they are notoriously hard to predict with any accuracy, in terms of timing, duration or impact. Rather than forecasting exactly when global markets might fall into recession this time, the following

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Quick take: Austerity deferred in the UK

Quick take: Austerity deferred in the UK

🕔08:28, 30.Nov 2022

It is hard to believe but just under eight weeks ago, Kwasi Kwarteng, then UK chancellor, announced his ‘growth plan’ comprising the Truss government’s energy price guarantee and large tax cuts. At the time, I described the announcement as radical

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Dividends: Building resilience in a new market reality

Dividends: Building resilience in a new market reality

🕔14:58, 23.Nov 2022

The market pivot away from growth stocks over the past year has brought the dividend component of total stock returns back into focus. Dividend-payers in the S&P 500 Index have outpaced the broader market by a significant margin over the

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Clean hydrogen: Opportunities beyond the hype

Clean hydrogen: Opportunities beyond the hype

🕔14:26, 22.Nov 2022

Hydrogen can be used as a carrier of energy, and as an input into chemical and industrial processes. Clean hydrogen is, therefore, a crucial decarbonisation tool for a range of industrial activities including steel, aluminium, iron and chemical production. We

Read Full Article
Flexible fixed income: The pursuit of consistent income streams

Flexible fixed income: The pursuit of consistent income streams

🕔15:56, 21.Nov 2022

Generating income is a key role of fixed income. For investors, the durability of income streams becomes more important amid heightened volatility in both equity and bond markets. Capital Group portfolio manager Damien McCann provides context around …

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ESG Global Study: Chapter 2

ESG Global Study: Chapter 2

🕔08:21, 18.Nov 2022

Investors looking to access a broad range of ESG themes are therefore tasked with buying several singlethematic or narrowly focused funds. This underscores the need for all-inone, fully diversified solutions that target a wide array of sustainable goals through one

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Brazil presidential election outcome

Brazil presidential election outcome

🕔16:36, 16.Nov 2022

Below are some takeaways by Capital Group’s emerging market sovereign debt analyst Thomas Kontchou on important economic and policy considerations given the leftist candidate Luiz Inácio Lula da Silva’s victory in Brazil’s presidential election.

Read Full Article
Is there a cure for current weakness in Chinese health care stocks?

Is there a cure for current weakness in Chinese health care stocks?

🕔08:16, 16.Nov 2022

As difficult as Chinese equities have been over the past year, weakness in the health care sector has been notable. While President Biden’s announcement of a plan to boost US biomanufacturing sent shares of Chinese health care companies tumbling over

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Five key outcomes from the 20th Chinese Communist Party Congress

Five key outcomes from the 20th Chinese Communist Party Congress

🕔09:42, 15.Nov 2022

With the book now closed on the 20th Congress of the Chinese Communist Party (CCP), market watchers are busy analysing the various personnel and policy developments as they try to plot the next five years and beyond for …

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Fixed income markets: when short term pain can bring long term gains

Fixed income markets: when short term pain can bring long term gains

🕔10:09, 14.Nov 2022

2022 has not been a great time for bonds. Year-to-date, the Bloomberg Global Aggregate Index and Bloomberg US Treasury Index returned-20% and -13%, respectively. 1 Meanwhile,risky asset classesalso sold off significantly, whichhas led to many investors questioningthe role of bonds

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Quarterly macro and market insights

Quarterly macro and market insights

🕔14:18, 12.Nov 2022

Sharp shifts in expectations for central bank policy and the resultant market volatility underscore the challenges facing investors. The third quarter featured a tale of two halves: An initial rally across markets turned into a selloff. Hopes for less restrictive

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Navigating dark clouds across emerging markets debt

Navigating dark clouds across emerging markets debt

🕔08:23, 12.Nov 2022

It has been an unrelenting year of negative headlines, with a war in Ukraine, inflation concerns and recession fears jolting investors into a frenzy. Capital Group Investment Director David Cheng sat down with Portfolio Manager Luis Freitas de Oliveira to

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Brazil presidential election outcome

Brazil presidential election outcome

🕔08:21, 12.Nov 2022

Below are some takeaways by Capital Group’s emerging market sovereign debt analyst Thomas Kontchou on important economic and policy considerations given the leftist candidate Luiz Inácio Lula da Silva’s victory in Brazil’s presidential election. The leftist Workers’ Party candidate Luiz

Read Full Article
Emerging market debt: an active approach

Emerging market debt: an active approach

🕔08:20, 12.Nov 2022

Emerging market debt (EMD) has already broadened and deepened significantly in the last few decades and as the asset class has developed, it has become more appealing to a broader investor base. Issuance has increased, thereby improving liquidity. Yield curves

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Is there a cure for current weakness in Chinese health care stocks?

Is there a cure for current weakness in Chinese health care stocks?

🕔06:18, 12.Nov 2022

As difficult as Chinese equities have been over the past year, weakness in the health care sector has been notable. While President Biden’s announcement of a plan to boost US biomanufacturing sent shares of Chinese health care companies tumbling over

Read Full Article
Why research is so critical when it comes to investing in China

Why research is so critical when it comes to investing in China

🕔10:27, 11.Nov 2022

Key takeaways Chinese equities have had a volatile 2022 so far as the country has had to navigate COVID-19 restrictions, property debt concerns and supply chain constraints among many other headwinds China is becoming an increasingly selective market that requires

Read Full Article
Quick take: Britannia unhinged

Quick take: Britannia unhinged

🕔12:42, 9.Nov 2022

Liz Truss’s defenestration last week exposed deep divisions over economic policy within the UK government and Conservative party. In winning the general election in 2019, Boris Johnson concealed these divisions by promising both higher public spending to his new voters

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Economic outlook dampens as challenges mount

Economic outlook dampens as challenges mount

🕔15:55, 5.Nov 2022

Quarterly Fixed Income Perspectives from Capital Group’s fixed income team: The combination of persistently high inflation, aggressive central banks and tightening financial conditions is weighing on financial markets and global growth outlooks. While valuations across many sectors look compelling after

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Hard and local currency bonds provide different routes to returns

Hard and local currency bonds provide different routes to returns

🕔14:27, 5.Nov 2022

Emerging market (EM) bonds are a strategic holding for many investors. But the desired result from an allocation to emerging market debt cannot be achieved without first considering the attributes of hard- and local currency-denominated bonds — the two broad

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How long might the dollar rally last?

How long might the dollar rally last?

🕔12:06, 5.Nov 2022

A rapid shift in the outlook for the global economy – punctuated by soaring inflation, Europe’s deepening woes and increasing fears of a worldwide recession – is having an enormous impact on currency markets. The US dollar has continued to climb

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Yields attractive, though headwinds to growth loom

Yields attractive, though headwinds to growth loom

🕔08:31, 2.Nov 2022

Quarterly macro and market insights: Sharp shifts in expectations for central bank policy and the resultant market volatility underscore the challenges facing investors. The third quarter featured a tale of two halves: An initial rally across markets turned into a

Read Full Article
Quick take: Britannia unhinged

Quick take: Britannia unhinged

🕔10:00, 31.Oct 2022

Liz Truss’s defenestration last week exposed deep divisions over economic policy within the UK government and Conservative party. In winning the general election in 2019, Boris Johnson concealed these divisions by promising both higher public spending to his new voters

Read Full Article
Equity investing in an inflationary environment

Equity investing in an inflationary environment

🕔10:02, 28.Oct 2022

After a long hiatus, the resurgence of inflation has become a key concern for investors over the past year. Central banks are moving towards a tighter monetary stance as they seek to tame long-term inflation expectations. With falling real incomes

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Attractive opportunities remain across four key credit markets

Attractive opportunities remain across four key credit markets

🕔14:26, 25.Oct 2022

It has been a challenging year for fixed income markets in 2022 amid rising inflation and slowing global growth. While uncertainty is likely to remain elevated, today’s starting yields offer an attractive entry point for long-term investors. Yields across sectors

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Fixed income at Capital Group: Targeting predictable outcomes to deliver on expectations

Fixed income at Capital Group: Targeting predictable outcomes to deliver on expectations

🕔12:16, 25.Oct 2022

Mike Gitlin, Capital Group’s head of fixed income, sets out the importance of investing in bond funds that deliver on their stated objective. He also explains what differentiates Capital Group from industry peers. We’ve heard you talk about the four

Read Full Article

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