Forward of the curve: From divergence to convergence
Following current occasions, the dynamic between the European and U.S. economies seems to have shifted from one among divergence to potential convergence, with a revitalised EU and heightened dangers that probably result in slower American development. In opposition to that backdrop, Capital Group believes mounted revenue traders ought to proceed to concentrate on the long-term fundamentals. Yields, that are a superb proxy for long-term complete returns, stay excessive and might subsequently take up a major quantity of near-term volatility.
Fastened Earnings Views: Q2 2025
Capital Group discusses how U.S. development momentum has slowed as recession dangers seem like rising within the face of tariff volatility. The asset supervisor’s key bond convictions embrace a desire for diversified sources of revenue from a number of credit score sectors.
Capital Group’s 2025 capital market assumptions
Capital Group’s 2025 capital market assumptions present a beneficial long-term outlook, anticipating mid-to-high-single digit returns for shares and low-to-mid-single digits for bonds. That mentioned, these expectations are decrease over a 20-year horizon in comparison with final yr.
Podcast: The Analyst View
Tune in to The Analyst View for unique funding insights in beneath 20 minutes. In every episode, Capital Group dive deep with their analysts to deliver you discussions on sectors and themes shaping the funding panorama, together with AI, the banking system, and U.S. tariffs.
