All-time highs can be bullish for stock markets

Bull markets have been much longer than bear markets, leading to new highs within each cycle 

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

When stocks reach record highs, investors may conclude they’ve missed the boat. Yet history suggests new peaks are a feature of long-term investing. Specifically, markets have trended higher and peaked multiple times in prior cycles.

Of course, market declines are also inevitable, and stocks can fall at any time. But history shows that fresh highs have often been a good entry point for long-term investors. Since 1950, every time the S&P 500 Index reached an all-time high, stocks were higher one year later 73% of the time and delivered a 16.2% average return.

Thus, investors who treat record highs as a reason to stay on the sidelines have often found that the market still had room to climb.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Past results are not predictive of results in future periods.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Tech dominates today, but history shows leadership changes

Tech’s sustained market leadership echoes energy’s shale-fueled boom

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Technology's latest run is remarkable for its strength and durability. The sector has led the S&P 500 Index for 83 months and counting, much of it attributed to the AI boom. The last time this occurred was during the shale revolution, when energy companies led for nearly a decade. In both cases, investors rallied around a transformational theme with the potential to support profits and economic growth.

Yet market leadership rarely lasts forever. One lesson from history is that today's winners can become tomorrow's laggards. Technology's growing share of the market has also increased concentration in major indexes, making diversification critical. For long-term investors, the challenge is not predicting when leadership will change, but building portfolios that can withstand it when it does.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Past results are not predictive of results in future periods.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Earnings growth expectations are surging

The current earnings growth trend is more commonly experienced post-recession

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Wall Street analysts have raised their expectations for corporate earnings after a strong start to 2026. The outlook now resembles earnings acceleration typically experienced during the early stages of a post-recession economic recovery.

Corporate earnings remain the biggest driver of long-term stock returns, and the healthy earnings backdrop has taken a front seat to inflationary concerns and war. Since reaching an intra-year low on March 30, 2026, during the height of the Iran conflict, the S&P 500 has gained 20.6% through September 30, 2026. Much of that rally has been fueled by companies that are central to the artificial intelligence buildout, such as chipmaker NVIDIA.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Past results are not predictive of results in future periods.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Bond yields remain elevated

Starting yields have been an indicator of long-term returns potential

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

With yields above their 15-year averages across most sectors, bonds continue to offer investors a compelling source of income. That opportunity comes against a backdrop of healthy corporate earnings and a U.S. economy that has remained resilient.  

History shows that starting yields are a reliable indicator of long-term bond returns. At today's starting yields, investors can potentially earn a substantial portion of their expected returns from bonds while taking less risk than they would in stocks.

Diversification remains as important in fixed income as it is in stocks. A well-constructed bond portfolio can help investors balance income potential and equity market volatility. One way to diversify is via an actively managed multi-sector bond strategy that can shift among sectors as opportunities and risks change. This could ultimately help investors navigate an uncertain economic environment while maintaining the potential for strong current income.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Past results are not predictive of results in future periods.

Bloomberg Global Aggregate Index represents the global investment-grade, fixed-rate bond market

Bloomberg U.S. Corporate Investment Grade Index represents the universe of investment grade, publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specific maturity, liquidity and quality requirements.

Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index covers the universe of fixed-rate, non-investment grade debt. The index limits the maximum exposure of any one issuer to 2%.

Bloomberg CMBS: Erisa Eligible Index measures the market of U.S. agency and U.S. non-agency conduit and fusion CMBS deals with a minimum current deal size of $300mn.

Bloomberg U.S. Asset-Backed Securities Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar denominated, fixed-rate taxable bond market.

J.P. Morgan Government Bond Index — Emerging Markets (GBI-EM) Global Diversified Composite covers the universe of regularly traded, liquid fixed-rate, domestic currency emerging market government bonds to which international investors can gain exposure.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

Information has been obtained from sources believed to be reliable, but J.P. Morgan does not warrant its completeness or accuracy.  The Index is used with permission.  The Index may not be copied, used, or distributed without J.P. Morgan’s prior written approval. Copyright 2026, JPMorgan Chase & Co.  All rights reserved.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

At 250 years old, U.S. is an economic powerhouse

America has a long history of adapting its economy to meet new technological and geopolitical realities

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

The United States has roughly 340 million people, or 4% of the global population. Yet it generates 27% of the world’s GDP, and American companies rank among the world’s most valuable.

Much of that strength is underpinned by the country’s long record of innovation. The U.S. spends more on research and development than any other nation, which has helped support industries ranging from healthcare to technology. The shale revolution of the early 2000s turned the U.S. into the world’s largest producer of oil and gas. Together, these advantages have helped the economy adapt to technological change and remain resilient through periods of global uncertainty.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

MSCI All Country World Index (ACWI) is a free float-adjusted, market capitalization-weighted index designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.(www.msci.com)

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Today's market is among the most concentrated in history

Markets have long rallied around compelling investment themes

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Today’s market concentration stands out, with the top 10 companies representing 40% of the S&P 500 Index. Similar levels of concentration emerged during Japan’s 1980s boom, and in the U.S. during the Nifty Fifty era. In 1964, the top 10 stocks represented 39% of the S&P 500, but those companies, including AT&T, General Motors, Exxon, IBM and Texaco, spanned a broad range of industries.

Today, many of the largest companies are tied to a single theme: AI investment. That creates the risk that AI-related stocks could move in tandem if spending on data centers or related infrastructure slows.

Market concentration alone is not cause for concern, but it is a reminder that trees don't grow to the sky. Investors should make certain their portfolios are broadly diversified beyond highly concentrated indexes. It may be a good time to add exposure to old economy sectors in addition to well-positioned companies outside the U.S.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

MSCI Japan Index captures the large- and mid-cap sections of the Japanese market.
MSCI World Index captures large and mid-cap representation across 23 Developed Markets (DM) countries.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.(www.msci.com)

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

AI concentration is a global phenomenon

Worldwide demand for computer chips has fueled market concentration

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Market concentration is not confined to the United States. Surging demand for semiconductors used in AI data centers has catapulted technology companies in South Korea and Taiwan to new highs. The top 10 companies in the MSCI Emerging Markets Index account for 40% of its total market capitalization, with SK hynix, Samsung Electronics and TSMC alone representing 30%.

Meanwhile, global markets continue to offer other attractive opportunities, particularly in Europe and parts of Asia, where valuations remain compelling. Examples include AstraZeneca, the largest pharmaceutical company in the U.K., and Tencent in China, the largest gaming company in the world.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

MSCI Europe Index is designed to measure developed equity market results across 15 developed countries in Europe.

MSCI World ex USA Index is designed to measure equity market results of developed markets. The index consists of more than 20 developed market country indexes, excluding the United States.

MSCI Emerging Markets Index captures large- and mid-cap representation across 27 emerging markets (EM) countries.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.(www.msci.com)

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Mega IPOs tend to be volatile in the short term

After the initial volatility, stocks settle over time and reflect underlying assets

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

An initial public offering megacycle is underway, with SpaceX, OpenAI and Anthropic among other high-profile technology companies coming to market and generating excitement from retail and institutional investors. Setting aside the hype, how should investors approach these deals? 

Looking at some of the largest U.S.-listed IPOs since 2004 shows that after the initial first-day return, many struggled in the weeks that followed. This reflects a period of price discovery, as some investors take profits, and others build their positions. But over time, shares tend to track earnings potential and reflect the value of the underlying business. It’s a reminder of investment guru Ben Graham’s famous quote, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”

Footnote(s)/Important information:

Past results are not predictive of results in future periods.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Market selloffs tied to oil supply shocks have been short-lived

Oil shocks are common sources of market volatility, yet stocks have historically climbed higher

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

The Iran war is a stark reminder that the world still runs on oil. When supply is threatened, the impact of higher oil prices spreads quickly to businesses, consumers, and global markets. 

When geopolitical shocks don’t result in prolonged physical supply outages, markets have bounced back quickly. Across seven oil supply shocks since the First Gulf War in the 1990s to Russia’s invasion of Ukraine in 2022, equities fell on average by 1% two weeks following the disruption, then rose 1.4% a month later, 12% a year later and 32.3% over the next two years. 

It highlights that markets are forward-looking and may already be anticipating a resolution to the present crisis.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Physical economy stocks are poised for a comeback​

A comparison to NVIDIA suggests potential value in major sectors

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

We may be living in an AI world, but that’s no reason for investors to ignore old economy companies.

NVIDIA’s market capitalization has climbed to $5.5 trillion, as of September 30, 2026, driven by massive spending to build data centers. To put that in perspective, NVIDIA’s market cap is larger than the combined value of three major sectors in the S&P 500 Index: energy, utilities and materials. This means investors could have a broader opportunity set, beyond big tech, into the companies supplying the tools that make AI possible, for example, Caterpillar‘s power generation equipment used in data centers.

Energy and utilities also offer opportunities to diversify portfolios while offering the potential for dividends and exposure to AI.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Innovation and income: Healthcare's powerful combination

Robust drug pipelines and free cash flow support long-term return potential

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Deep pipelines provide pharmaceutical companies with a powerful growth engine and reduce reliance on any single product. Many also generate healthy free cash flow, allowing them to return capital to shareholders through dividends or strengthen pipelines through targeted acquisitions.

AstraZeneca, for example, has a well-established range of oncology franchises. To drive future growth potential, it has assets targeting everything from heart disease, chronic kidney problems to metabolic conditions. The combination of innovation-led growth and dividend defensiveness can potentially enhance portfolio resilience while still offering compelling upside.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

MSCI All Country World Pharmaceuticals Index is composed of large- and mid-cap stocks across 23 Developed Market countries that are classified in the Pharmaceuticals industry group according to the Global Industry Classification Standard (GICS®).

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.u

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.(www.msci.com)

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

The global leaders of today may not be leaders of tomorrow

Market leaders of each decade reflect new sources of economic growth

Key takeaways

Today’s market leadership may seem enduring, but history suggests otherwise. Every decade since the 1980s, most of the top companies in the global stock market have changed. The oil giants of the early 1980s gave way to Japan’s corporate ascent by 1990, which in turn yielded to the internet and telecom boom at the turn of the millennium. By 2010, market leadership expanded to include emerging markets and commodity producers. At the start of 2020, the list has narrowed to a handful of dominant U.S. tech firms.

The fact is market leadership tends to change. For investors, the lesson is to stay diversified and recognize change is inevitable.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

MSCI World Index is a free float-adjusted market capitalization-weighted index designed to measure equity market results of developed markets. The index consists of more than 20 developed market country indexes, including the United States.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.(www.msci.com)

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Rising U.S. debt has not stopped markets from advancing

Much of the increase stems from crisis responses that lowered interest rates and ultimately supported economic growth

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Is the increase in U.S. debt a concern? It’s a question our economists and portfolio managers grapple with regularly. The answer depends on when foreign and domestic investors decide they no longer want to own U.S. Treasury securities. It’s difficult to know if and when that day will arrive.

It’s true that U.S. debt has increased significantly, but most of it occurred during the two massive shocks of the global financial crisis and the COVID-19 pandemic. In both periods, debt surged alongside falling interest rates, highly accommodative policy and, eventually, a rebound in growth. The S&P 500 Index has done well even as government debt climbed, in part because those same forces that pushed debt higher often supported corporate earnings, growth and risk taking.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Control of Congress has had little impact on investment returns​

Markets have averaged double-digit returns regardless

Key takeaways

There’s nothing wrong with wanting your preferred candidates to win, but investors can run into trouble if they mix politics with their investment portfolios. That’s because, historically, elections have had little impact on long-term investment returns. Going back to 1933, markets have averaged double-digit returns during various scenarios, including when a single party controlled the White House and both chambers of Congress as a “unified government,” a split Congress and when a president’s opposing party controls Congress. 

Although midterm election years have exhibited these trends in aggregate over long periods, it is important to remember that each year follows its own path. Midterm elections, and politics as a whole, generate a lot of noise and uncertainty. But the reality is that long-term equity returns are generated by the value of individual companies over time. A prudent investor should look past the short-term volatility spikes that elections can bring and maintain a long-term focus.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Extreme pessimism often preceded double-digit returns for equities

Sharp declines in consumer sentiment often coincided with markets pricing in worst-case scenarios, creating attractive opportunities

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

When consumer confidence sinks, markets typically price in lower return potential as investors anticipate that consumers will cut back on spending, which accounts for roughly 70% of U.S. GDP.

However, market timing moves can backfire. Some of the strongest returns have occurred after consumer sentiment bottomed. Looking back at major sentiment lows — including the inflation shock of the 1980s, COVID-19 pandemic and the Federal Reserve’s rapid interest rate hikes in 2022 — returns one year later averaged 28.5%. 

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Index fund investors may hold high concentration risk

S&P 500 Index concentration in top 10 stocks is near record high as tech stocks dominate returns.

Key takeaways
 

Market concentration has reached extreme levels with the ten largest stocks representing almost 40% of the S&P 500 Index. That’s even higher than it was during the internet boom in 2000.
 

That narrow leadership reflects enthusiasm for artificial intelligence, but also presents substantial risks given how concentrated portfolios may have become. This may be a moment for investors to review their portfolios and ask themselves whether a passive strategy has become unintentionally active. As market leadership broadens, exposure to a broad range of sectors including defense, health care and industrials could help create a more balanced portfolio.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Passive funds are not striving to outpace their benchmarks, rather, they seek to replicate the benchmark's return pattern.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

U.S. equities outshined gold and silver over the past 40 years

Stocks reflect ownership in companies that generate earnings and reinvest capital, while precious metals preserve value rather than create it

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways
  

Gold’s rally in recent years has captured the attention of investors. A major driver has been purchases by central banks outside of the United States who may be worried about the long-term stability of the U.S. dollar and a world that appears to be more fragmented. 

Yet, over the past four decades, U.S. equities have significantly outperformed gold and silver. Stocks benefit from compounding and represent ownership in companies that generate earnings. Gold, by contrast, is a commodity whose primary function is to preserve value rather than create it. 

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Bonds have offered resilience during equity selloffs 

Bonds have been known to zig when equity markets zag. That's particularly true during the largest stock declines

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

In periods of slowing economic growth, bonds often shine brightest. In fact, it’s the reason high-quality core bond funds are often the foundation of a classic 60% equities and 40% bonds portfolio. While the exact allocation may shift, a diversified portfolio is intended to generate attractive returns while reducing risk. 

Today, bonds enter that role from a stronger starting point. Higher yields following the Federal Reserve’s rate-hiking cycle in 2022 provided a larger income cushion to help absorb price volatility should interest rates rise. With income levels more competitive, investors may be able to rely on high-quality bonds to meet their return expectations while taking less risk overall.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

The U.S. is the world’s top oil and gas producer

Technological advances unlocked vast U.S. oil supplies over the past decade, strengthening the nation’s energy security.

Footnote(s)/Important information:

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Market surprises are a fact of life

Intrayear declines in the S&P 500 Index are common, yet annual price returns have been positive in 53 of the past 72 calendar years.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Past results are not predictive of results in future periods.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

AI spending dwarfs history’s biggest moonshots

Spending by big tech companies is expected to surpass the largest technological efforts in U.S. history at 3.2% of GDP

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

The big tech companies driving the AI revolution have committed to invest roughly $768 billion in capital expenditures in 2026 and $1.05 trillion in 2027, equivalent to about 2.4% and 3.2% of U.S. GDP, respectively. These investments have largely flowed to “pick and shovel” companies that are supplying the datacenter buildouts. Examples include heavy equipment maker Caterpillar, heating-and-cooling manufacturer Carrier and chipmakers like NVIDIA.

The scale of AI investment exceeds the Manhattan project, Apollo space program and internet buildout by a wide margin. Those projects were a catalyst for new companies and technological advances that reshaped industries for decades.

Footnote(s)/Important information:

Hyperscalers are large technology firms that operate global data‑center networks to provide scalable cloud computing and AI services.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Markets have powered through previous crises

Market downturns are painful, but history shows they’re common. Over the long term, stocks have been resilient

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Imagine going back in time to New Year’s Day 2020 and learning in advance what the next six years would bring: A pandemic, inflation topping 9%, multiple wars and the highest U.S. tariffs in decades. Would you want to invest in stocks? Probably not.

Yet time after time, financial markets pushed through each shock and reached new highs. So, if on that January morning you ignored all the troubling events and had stayed invested, the S&P 500 Index would have risen more than 162% on a cumulative basis.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Past results are not predictive of results in future periods.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Why AI may not be a bubble

Earnings growth is driving today’s stock gains — a sharp contrast to the dot-com period when share prices far outpaced profits

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Soaring AI stocks have prompted comparisons with the late-1990s tech stock boom — and painful bust. If a bubble is forming, the question is where we are on that timeline. Is the year 2000 an appropriate analogy, which would imply a bubble is about to pop, or is it 1998, indicating that AI stocks have room to run?

For now, fundamentals for AI stocks look healthy. Today’s AI leaders are generally supported by solid earnings growth. What’s more, companies making aggressive AI-related investments — Alphabet, Amazon, Broadcom, Meta, Microsoft and NVIDIA, among others — can support their massive capital spending far better than the upstarts of the late 1990s. The conclusion? It’s too early to let the risk of a bubble overcome the opportunities presented by this formidable technology.

Footnote(s)/Important information:

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
© 2026 Capital Group. All rights reserved

Robust earnings growth may fuel stock market gains

Earnings growth is expected to rise across several markets

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Companies have shown surprising resilience, with earnings growth projected to remain strong worldwide.  

In the United States, investors are projecting a 15% bump in earnings for 2027 compared to 13% and 32% in 2025 and 2026, respectively. Emerging markets are even more powerful, with earnings growth expectations coming in at 25% for 2027 compared to 16% and 68% in 2025 and 2026. And although Europe, Japan and China earnings expectations are weaker than the U.S. and EM, they're still expected to grow next year a healthy 9%, 14% and 14%, respectively.

Footnote(s)/Important information:

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

MSCI Europe Index is designed to measure developed equity market results across 15 developed countries in Europe.

MSCI Emerging Markets Index captures large- and mid-cap representation across 27 emerging markets (EM) countries.

MSCI Japan Index is a free float-adjusted market capitalization-weighted index designed to measure the equity market results of Japan.

MSCI China Index captures large- and mid-cap representation across China A shares, H shares, B shares, Red chips, P chips and foreign listings (e.g., ADRs). The index covers about 85% of this China equity universe. [Currently, the index includes Large Cap A and Mid Cap A shares represented at 20% of their free float adjusted market capitalization.]

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.(www.msci.com)

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Bull markets have been much longer and stronger than bears

A comparison between bull and bear markets shows there is no comparison. Bull markets can run for years and deliver outsized returns for patient investors.

Footnote(s)/Important information:

Past results are not predictive of results in future periods.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

After large declines, stocks can recover quickly

Large market downturns can be nerve-racking, but recoveries have been powerful – especially in the first year after a decline.

Footnote(s)/Important information:

Past results are not predictive of results in future periods.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization‑weighted index based on the results of approximately 500 widely held common stocks.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Timing the market can be costly

Missing just the best 10 days is enough to set a $10,000 investment back nearly 48% compared to staying fully invested over a 10-year period.

Footnote(s)/Important information:

Past results are not predictive of results in future periods.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization‑weighted index based on the results of approximately 500 widely held common stocks.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Fed interest rate cuts can be good for stocks and bonds

Lower interest rates are a tailwind for housing and the broader economy.

Footnote(s)/Important information:

Past results are not predictive of results in future periods.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market.

Bloomberg U.S. Treasury Bill 1-3 Months Index tracks the market for Treasury bills with 1 to 3 months to maturity issued by the U.S. government.

MSCI World ex USA Index is designed to measure equity market results of developed markets.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

© 2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.(www.msci.com)

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Stocks have trended higher regardless of which party was in office

Decades of market data show stocks climbing through Democratic and Republican administrations alike.

Footnote(s)/Important information:

Past results are not predictive of results in future periods.

The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

The S&P 500 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

Investors have underestimated the long-term impact of new tech

Time and again, new tech proved far more transformative than investors expected, but it took years.

Footnote(s)/Important information:

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

AI spending has surpassed the dot-com mania

AI spending is now outpacing the dot-com era, signaling a new phase of accelerated innovation

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways

Tech companies have poured hundreds of billions of dollars into AI, despite concerns about future returns on their investment.

All that spending begs the question: Are we headed for a bust that rivals the tech wreck in 2000? While investors can’t rule out an “AI winter,” the 1990s PC and internet revolution is different from today’s tech story. The former was about hardware, connectivity, networks and information, whereas AI is about extracting accumulated knowledge.

And unlike the dot-com bubble, today’s companies are flush with cash and have robust earnings. Valuations vary widely, so deep, fundamental research can help separate the winners from the losers.

Footnote(s)/Important information:

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Capital Client Group, Inc.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

© 2026 Capital Group. All rights reserved.

U.S. and international stocks take turns leading

U.S. and international markets have taken turns leading for decades, rising and falling in long-running cycles. Dollar weakness has often aided international stocks.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Key takeaways
  

Sustained dollar weakness has often supported international stocks, helping returns for U.S. based investors when local currencies are converted back to dollars. The dominance of U.S. stocks may be less powerful than in recent years, given the combination of a weaker dollar, healthy earnings growth for non-U.S. stocks and reasonable valuations abroad.

Footnote(s)/Important information:

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MSCI EAFE® (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index that is designed to measure developed equity market results, excluding the United States and Canada.

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