Japan faces many headwinds as it battles COVID-19 alongside other challenges unique to itself. Bright spots can still be found, however, amid the economic storm. In this Q&A, the co-principal investment officers of the Capital Group Japan Equity strategy put
We still believe that there is good value across a range of emerging market (EM) debt assets – in absolute terms and relative to other fixed income asset classes Emerging market debt is unlikely to face a broad EM debt
Key takeaways Because this economic decline is policy driven, a solid recovery is likely as lockdowns end. Easy monetary policy, aggressive fiscal policy and zerobound interest rates should continue to support equity markets. Low growth and inflation suggest that the
COVID-19 and the consequent market volatility have had a huge impact on the Japanese economy. How will the situation affect the Japanese equity markets in the years ahead? Equity portfolio manager Dickon Corrado shares his views on why Japan is
2020 Midyear Outlook key takeaways: Macro:Recoveries have been longer and stronger than downturns. Equitie: Companies will drive the next recovery. Fixed income: Core strength is paying off.
Key takeaways The impact of the recent volatility has varied greatly within emerging markets, particularly between the investment grade and higher yielding parts of the asset class. This has been reflected in the differences in yields in local and hard
Key points: Bond markets have stabilized, but the economic recovery will be measured in years. Central banks, as well as governments through fiscal stimulus measures, have played a key role in supporting markets. This is a time to be patient,
Many corporate dividends are at risk for political, social and economic reasons. However, certain companies within industries such as consumer staples, pharmaceuticals, technology and utilities may offer greater dividend safety relative to companies in other industries Despite near-term risks, dividends
Fixed Income Perspectives The trajectory of global growth turned downward as governments scrambled to deal with the social and economic impacts of the COVID-19 pandemic. The …
Key points Emerging markets are not homogenous. Taking a bottom-up, idiosyncratic approach can help identify investment opportunities regardless of where companies are based or macroeconomic conditions. In times of heightened volatility, a patient approach and an extended time horizon can
Investment Insights – Q&A In this Q&A, Capital Group fixed income investment director James Blair discusses the characteristics of emerging market debt, how investors could approach investing in the asset class and the US Federal Reserve (Fed)’s policy response to
Investment Insights SARS-nCoV2, the novel virus that causes the COVID-19 disease, is a novel pathogen that’s never before seen in humans. We have so far seen over 3.6 million known cases worldwide, with over 258,000 deaths. It is a highly
Investment Insights We will see a sharp fall in the EU’s GDP in Q1 2020, followed by probably the largest fall in GDP ever seen in Q2. The OBR2 forecasts a 35% drop in UK GDP in Q2. Thereafter, it
Amid market volatility following the outbreak of the COVID-19 virus, fixed income markets went from famine to feast — experiencing a near total drying up of market liquidity for a few days in mid-March to a record volume of new
The past months have been a time of turmoil for credit markets, with spreads widening dramatically before tightening towards the end of March as governments and central banks stepped in to help alleviate financial market stress. The volume of debt
During periods of volatility in the stock market, you may have doubts about your long-term investment strategy. Here are five tips to help you avoid common pitfalls and stay on track toward achieving your financial goals
Prior to the outbreak of COVID-19, our economists and Portfolio Strategy Group were modestly constructive on the economic outlook for 2020. In large part, this was driven by progress on trade negotiations between the U.S. and China, more clarity around
Investment Insights Capital Group’s Kirstie Spence explores how the coronavirus and general market volatility have affected emerging market debt, how liquidity is holding up, and provides her outlook for the asset class. How has emerging market debt fared in these
Guide to recessions That’s one of the most frequently asked questions we hear. And for good reason. The coronavirus outbreak has caused disruptions in unprecedented ways, sparking the fi rst bear market in 11 years. Although the full extent of
Our private ownership model and strong balance sheet afford us the ability to maintain a long-term focus • Being a truly integrated global firm has enabled a smooth transition to working remotely • Robust business continuity procedures are enabling our
Key takeaways The energy sector has been hit harder by the COVID-19 outbreak than most areas, as a combination of supply and demand challenges has weighed on crude oil prices. US shale exploration and production (E&P) companies are more vulnerable
Key takeaways The combination of the coronavirus outbreak and oil price volatility will likely stunt global economic growth in the near term. Markets often overreact during a crisis and present attractive opportunities for research-based investors to add to positions at
Key points: Recent action by the US Federal Reserve is intended to avoid a seizure of financial markets. Our economic team believes there is a 70% chance of a US recession. They also note that the average market decline when
Key points: Global stocks have fallen sharply following confirmation that the coronavirus has spread beyond Asia. The outbreak poses a significant near-term threat to the eurozone’s fragile recovery. The impact leaves Germany the most exposed through its trade links with
Quarterly macro and market insights Our macro outlook for 2020 is modestly constructive. Recent clarity around certain geopolitical risks has been helpful. Specifically, progress in the initial phase of a US-China trade deal and a decisive result in the December
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