Investment Insights | Capital Group

Investment Insights

Japanese equities weathered a bumpy 2016. But for investors, there is promise beyond the uncertainty. Portfolio manager Seung Kwak explains why.

Currency movements often produce a wild ride for investors, but 2016 was a year for the ages. Find out what’s in store for 2017.

Learn why inflation is up, who may be most affected and which investments could help preserve purchasing power.

Investment Insights

Where Is China’s Economy Headed in 2017? January 2017

Get perspective on the growth prospects for the world’s second-largest economy, its red-hot housing market and weakening currency.

Investment Insights

Unraveling the Strong-Dollar Dilemma January 2017

Will the dollar’s strength continue? And what does a strong dollar mean for multinational companies? Capital Group portfolio managers Jody Jonsson and Tim Armour discuss.

Learn about opportunities these portfolio managers see in the taxable and municipal bond markets this year.

FIXED INCOME FOCUS

US rates and credit outlook January 2017

In this issue of Fixed Income Focus, we look at the factors that might affect bond yields, and discuss the segments of the credit markets to watch for 2017.

Investment Insights

Global investment themes to watch in 2017 January 2017

US interest rates and corporate earnings, bifurcated emerging markets – these are just some of the themes our portfolio managers will be keeping an eye on.

Investment Insights

2017 Outlook: Navigating a world in transition January 2017

Amid a shifting political landscape and muted growth, should investors reset their expectations? Our 2017 Outlook brings you perspectives on the latest developments facing investors today.

Investment Insights

Fixed Income Focus: Municipal and global bonds January 2017

In this issue of Fixed Income Focus, we discuss why revenue bonds are often a better muni value, and how foreign currency exposure can help protect purchasing power.

Capital Group Global High Income Opportunities portfolio managers discuss the potential impact of Donald Trump’s election as US president on the emerging market debt and high-yield markets.

Investment Insights

Five keys to investing in 2017 January 2017

There are steps investors can take to be prepared for market volatility and political uncertainty.

What are the most compelling investment opportunities right now in emerging market debt? Portfolio manager Laurentius Harrer shares his view.

Investment Insights

Globalisation: Where are we now? December 2016

Although the prospects for further global integration have become less certain, Capital Group New Perspective strategy’s portfolio managers remain optimistic for the future.

Investment Insights

Gain an active advantage in Japan December 2016

Many stock markets around the world offer active managers room to generate superior returns. Among them, Japan stands out.

Investment Insights

Extracting the value in US credit December 2016

The US investment-grade credit market is broad, deep and diverse. Find out what it takes for an investment manager to extract this value.

Should investors consider investment-grade corporate bonds in the current environment? Fixed-income investment director Luke Farrell shares his views.

Investment Insights

Post-Post-Crisis Era to Continue December 2016

Reports of the bond market’s death have been greatly exaggerated. Read to find out why fixed income should remain a core component of a balanced investment portfolio.

Capital Group economist Jared Franz discusses the connection between U.S. productivity and profits, and shares his outlook for both.

Investment Insights

How Trump’s Policies Might Move Interest Rates November 2016

What are the implications a Trump administration may have for interest rates, inflation and the Federal Reserve?

Republicans will soon control all three branches of the US federal government. Read how that could affect the economy.

Investment Insights

US Election 2016 November 2016

How president-elect Donald Trump could move markets through policy decisions in five key areas.

Portfolio manager Grant Cambridge shares his views on the current state of the US economy, where he sees opportunities in the US equity market, and the upcoming US presidential election.

The knee-jerk reaction from Brexit reflects the view that we are now more likely to see a “soft” Brexit. Capital Group economist Robert Lind shares a few thoughts on the recent developments.

With key elections pending in the US and four countries in Europe, political risks are growing as global growth slows.

Investment Insights

Why invest in Sub-Saharan Africa? November 2016

With many countries experiencing a protracted period of low economic growth and negative interest rates, Sub-Saharan African bond markets offer the potential for stronger growth and exhibit lower-than-typical correlations to other emerging markets.

Investment Insights

US earnings slump showing signs of a reversal November 2016

Capital Group economist Jared Franz has an improving outlook for US corporate earnings. What factors is he watching?

Chinese internet companies are developing cutting-edge apps amid the country’s shift to a services–led economy.

Whether it’s housing for millennials or healthcare for baby boomers, a significant shift in the way people spend money is underway in both advanced economies and the developing world.

Investment Insights

Investing in the second machine age November 2016

Robot surgeons. Self-driving cars. Automated factories. Amid staggering improvements in technology, machines are beginning to take on tasks that were once out of their league. Whether the world is ready or not, the second machine age has arrived.

This issue of Fixed Income Focus shows you what makes US corporate bonds so attractive and how hedging costs are shifting global demand for US Treasuries.

Investment Insights

Bank of Japan revs up stimulus October 2016

The central bank of Japan introduced a new policy to steepen the yield curve and contain the damages to the profitability of banks and financial institutions.

Investment Insights

Decision 2016 – The US Presidential Election October 2016

Capital Group investment professionals discuss the upcoming US election and what the outcome may mean for the US economy, public policy and investments. 

Some yield-seeking investors think value and dividend investing are the same. Learn about the differences and why they matter.

Capital Group portfolio manager Nick Grace says we're about to witness something he never expected to see: curtailments in China.

A decade ago, most new municipal issues were sold with bond insurance. For some investors, risk in the US municipal market was an afterthought. Not so any more.

Investment Insights

The future of emerging markets October 2016

Portfolio manager Dave Holstein addresses the implications of geopolitics and demographics on the future of emerging markets, and explains how technology empowers developing economies to ‘leapfrog’ to progress faster than expected.

Investment Insights

Back to the future: Old-school semiconductor stocks heat up October 2016

When looking for the next great thing in the tech sector, semiconductors usually don't come to mind. This year may be different.

Many emerging markets have struggled lately, and continue to face macro headwinds that make for a challenging investment environment. But despite the issues facing developing countries, technological innovation is providing a tailwind.

Could earnings start to improve from here? Indeed, there are a few positive signals, particularly as some of the headwinds to corporate earnings begin to ease. Here are four main factors pushing S&P 500 earnings lower, and all of them are showing signs of a potential shift.

As governments take the brakes off spending, fixed-income portfolio manager Mark Brett favours the US Treasury Inflation-Protected Securities, the Japanese yen and local currency emerging market bonds.

This issue of Fixed Income Focus shows you how to find value in distressed bond sectors, and what political change means for investors.

Investment Insights

Japan: The land of opportunity for stock-pickers September 2016

What is inhibiting progress on labour market reform in Japan? Why are Japanese small- and mid-cap stocks under-researched? Find out more in this Q&A as portfolio manager Akira Horiguchi shares his views on why Japan remains a huge draw from a stock-picking perspective

From Brexit and recession fears to negative rates and oil shocks, there has been no shortage of investment headlines so far this year. Here are eight charts that explain some of the most important stories from 2016

While the market remains focused on the Pokémon GO phenomenon as a mobile gaming success story, there appears to be more to this story than meets the eye. Equity investment analyst Sugiharto Widjaja discusses how globally recognisable intellectual property can provide powerful tailwind for companies.

What are some of the characteristics that make Argentina unique from Brazil? Are bright spots emerging in India’s enormous government bond market? Watch this video as portfolio manager Rob Neithart discusses the contrasting bond opportunities he is finding in Argentina and India.

Several of our fixed-income professionals, including the head of fixed income Mike Gitlin, discuss some of the considerations fixed-income investors should bear in mind in this environment. These include not fearing duration, avoiding bond strategies with "scope creep" and aiming for liquid assets.

Emerging markets have been volatile against a challenging macroeconomic backdrop. With elections pending in several countries, political uncertainty remains high. Yet, interestingly, many emerging markets' economies are at the beginning stages of economic reforms and recovery.

As we head into the second half of the year, Capital Group's Beijing-based China affairs specialist Andrew Dougherty and Hong Kong-based economist Stephen Green offer their latest views on China's economy, currency and potential investment opportunities.

Investment Insights

US outlook: the world's bright spot August 2016

After a 'growth scare' and Brexit, the US economy forges ahead.

Investment Insights

Seeking returns in any market environment August 2016

In this Q&A, portfolio manager David Lee discusses his approach to investing in corporate bonds, and how he works with analysts to seek to generate excess return in a variety of economic and market environments.

Investment Insights

Uncovering value in emerging market bonds August 2016

Amid political change and uneven growth, the yield advantage of emerging markets over developed markets is hard to ignore, and in some cases valuations are as attractive as they've been in years.

Portfolio manager Seung Kwak shares his views on Abenomics, the postponement of Japan's second consumption tax increase, and the impact of negative interest rates and Brexit on the country.

In this issue of Fixed Income Focus, find out how European monetary policy is affecting corporate bonds beyond its borders, and why monetary policymakers in the US may choose to embrace potential inflation.

Beyond the noise, the global economy is expected to remain on a path of growth - albeit very slow growth.

Following the exit vote in the UK's EU referendum, we outline our perspective on some of the implications.

Our main approach to investing in emerging market debt is based upon a bottom-up country analysis and relative value across asset classes. However, there are some systemic or macroeconomic drivers of returns that can affect both asset classes broadly.

European bank stocks have underperformed the broader market in 2016, but appears to be trading at tempting valuations.

While it might seem like we're living in highly troubled times, tumultuous events have been a constant theme for US presidential elections throughout history.

Even if the Fed hikes rates this summer, long-term rates are likely to stay low. With this in mind, it is important for investors to look towards global niches to find the value they require.

In this paper, we set out what has allowed Capital Group's New Perspective strategy to grow over decades, distinguishing itself from other global equity strategies.

Behavioural biases such as loss aversion and herd mentality can skew investors' decisions and impact returns. At Capital Group, we believe that buying and holding solid portfolios with downside resilience and lower volatility can help protect investors from making irrational decisions, and reward them for their patience.

As a growing number of central banks adopt negative interest rates, what does it mean for the global economy?

Investment specialist Greg Garrett explains why investors should get used to volatility and how they can utilise core bond portfolios to mitigate risk.

INVESTOR RESOURCE

Pessimism about Japan is overdone May 2016

Seung Kwak, portfolio manager for Capital Group's Japan Equity strategy, explains why he thinks that the downbeat verdict on Japan is premature. The country has embraced far-reaching structural changes - some that once seemed unthinkable.

Here are some tips to help you avoid common pitfalls and stay on track toward achieving your financial goals.

Investment Insights

The Long View: Investing in US innovation May 2016

The United States' entrepreneurial spirit and the economy's resilience are providing unprecedented opportunities for companies and investors.

As fixed-income investors face negative rates and other challenges in several developed markets, the search for better value could lead them to US bonds.

Investment Insights

Search for the secure income April 2016

At a time when bond yields are low, equity strategies based on dividend payers have obvious appeal.

Investment Insights

Emerging markets: where do we go from here? March 2016

While emerging markets face headwinds, the long-term case is strong and intact.

Portfolio manager Kirstie Spence explains why emerging market fundamentals may be stronger than markets would suggest and gives her view on the key themes that are having an impact on the global markets.

Investment Insights

Fixed Income Focus: US economic outlook March 2016

In our third installment of the Fixed Income Focus, investment specialist Greg Garrett discusses the mixed outlook for the US economy and what this means for investors.

At a time of uncertainty about the prospects for the global economy, three of the New Perspective strategy's managers set out their views on the investment outlook for the year.

Taking a long-term view to investing matters. Find out from our latest research on long-term investing, how behavioural biases can drive investment decisions and, more importantly, affect investment returns.

Investment Insights

The dollar's ascent could be in its final phase February 2016

Portfolio manager Mark Brett shares his view on the period of dollar strength and the opportunities in emerging market currencies.

China's slowing economy and falling oil prices topped the list of worries heading into 2016, but now concern has spread to other areas.

Investment Insights

Credit and US rates outlook February 2016

In this issue of Fixed Income Focus, we discuss how last year's trends could shape this year's credit market, and what to expect from markets as the Fed tightens rates.

Investment Insights

China, Volatility and Why This Is Not 2008 January 2016

Portfolio manager Jody Jonsson discusses the role of China's decelerating GDP and overvalued currency in the latest market volatility.

Investment Insights

Opportunities in 2016 Amid Bumpy US Recovery January 2016

Capital Group portfolio manager Tim Armour discusses his outlook for the US economy and US company growth.

Investment Insights

US, China Trade Places as Global Growth Engine January 2016

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

Investment Insights

Investment Themes to Watch in 2016 January 2016

Portfolio managers Tim Armour and Rob Lovelace discuss opportunities in the emerging markets, energy, health care and the Internet.

Investment Insights

Capital Group Hiring Where the World is Going January 2016

Capital Group portfolio manager Rob Lovelace discusses the investment group's approach to hiring new research associates.

As the year unfolds, investors who can see beyond macroeconomic headlines and seek out bright spots across the investment landscape stand to benefit.

Global stocks have started the year on a volatile note amid slowing growth in China, lower oil prices and weak industrial activity. But we believe that chances of a global recession or financial crisis are low.

Investment Insights

Rates and liquidity outlook January 2016

Is this time different for the US rate cycle and its global impact?

Investment Insights

Emerging markets: not when, but how January 2016

Investors have been asking when they should get back into emerging markets. But for us, the real question is how.

An unconstrained approach to investing in emerging market debt can be beneficial in the current environment, where economic growth patterns and fundamentals are diverging.

Read the perspective of Capital Group fixed income portfolio managers on the Fed's decision to raise rates for the first time in nearly a decade.

Despite a tough year for the financial markets, we believe that there will continue to be ample opportunity for long-term investors. Find out more from the views of Capital Group portfolio managers on the current investment environment and identify opportunities in 2016.

Investment Insights

Emerging markets: where do we go from here? December 2015

Many investors have reduced allocations to emerging markets in recent years. However, with valuations becoming compelling and the long-term investment case remaining strong, there are signs that many are considering the asset class once more.

In this Q&A, Capital Group Global Bond strategy portfolio manager Thomas Hogh shares his insights on the key issues that confront global bond investors today and his outlook for economic growth in 2016.

Investment Insights

Taking India's Pulse November 2015

The challenges are considerable, but so is the potential.

The key question facing US monetary policy is not when the Federal Reserve will raise interest rates, but how far it can go given mixed economic conditions in the US and intensifying financial pressures around the world.

Investment Insights

Q&A with portfolio manager Robert Neithart October 2015

Fixed income portfolio manager Robert Neithart shares his views on why, despite the potential for further weakness in the short term, the long-term outlook for emerging market debt is much more positive.

Despite recent market turbulence, history reminds us that declines are a relatively routine event. Read our Quarterly Investment Insights for perspective on the latest developments facing investors today.

Investment Insights

A new perspective on global investing October 2015

Through identifying changing global trade patterns and companies that are able to reshape the competitive landscape, the New Perspective strategy has outpaced the market since inception in the US.

Investment Insights

Take a long-term view and stay invested October 2015

Much has been said about the time horizon of investing, but what do long and short time horizons really mean? One way to think about the issues surrounding investment horizon is to consider them through two perspectives - that of the asset owner and the investment manager. Read to find out more.

The new chair of our Fixed Income Management Committee shares his thoughts on the increasing role of fixed income at Capital, especially as changing demographics lead to a greater need for more secure retirement income.

Find out why bond investors shouldn't fear the Fed, and what we think are the current opportunities in the US stock market.

Investment Insights

The Long View: the future is under construction September 2015

Today's wave of urbanisation is bigger and faster than ever, and it is transforming the developing world. The migration to cities calls for massive investments in infrastructure and technology, creating significant opportunities for companies and investors.

Investment Insights

The China syndrome: meltdown or recovery ahead? September 2015

Segments of China's economy remain poised for growth despite an overall slowdown in activity. Our economist Stephen Green and China affairs specialist Andrew Dougherty discuss their outlook for China.

Here are some tips to help you avoid common pitfalls in volatile markets.

Global stocks have tumbled in recent days but periodic market corrections are not necessarily bad news ? especially if they provide opportunities to invest in strong companies at attractive prices.

It is often difficult for investors to access Africa. Having access to the broadest possible emerging market opportunity set potentially allows for greater diversification within a portfolio and helps limit investment risk.

Investment Insights

Africa: the land of selective opportunity August 2015

African bond markets offer the potential for positive credit migration and diversification. Find out how on-the-ground research and comprehensive macro analysis can weigh up the fundamental outlook for each country with the valuation of the bonds.

Capital Group's New Perspective strategy focuses on investing in companies that have benefitted from changes in global trade patterns. We are now making this strategy available to our investors in Asia for the first time.