Chart Stories

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 156% 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.

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.

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:

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 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.

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.

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

Bonds hit a sweet spot for income and diversification

Bonds emerged more resilient following the Federal Reserve’s 2022 hiking cycle

Key takeaways

Bonds have reclaimed their role in portfolios, offering stronger return potential and better diversification at a time when investors need both.

Starting yields of roughly 4.5% to 5% for the Bloomberg U.S. Aggregate Index provide a solid baseline return expectation and have historically been a good guide to future returns. That income also helps cushion portfolios amid uncertainty around growth and inflation.

This is a sharp contrast to 2022, when yields were below 2% and policy flexibility was limited. Bonds today are less sensitive to interest rate risks. Moreover, bonds may provide stronger diversification in equity sell-offs, given the Federal Reserve has ample room to cut interest rates.

Footnote(s)/Important information:

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.

Duration is a measure of a bond's price sensitivity to interest rate changes, expressed in years.

Yield to worst is the lowest possible annualized return an investor could receive, assuming no default and that the bond is called, put or held to maturity.

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.

Innovation and income: Healthcare's powerful combination

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

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.

Markets have rebounded sharply after midterm elections

History shows market strengthened once election-related uncertainty lifted

Key takeaways

As most people know, the party in power tends to lose ground in the midterm. Leading up to the election, that uncertainty can stir market volatility. But once the results are decided, markets tend to rally. In fact, the average return in the year after a midterm election year is 15.4%, which is roughly double all other years.

Every cycle is different though, and elections are just one of many factors influencing market returns. So far, the competing forces of rising corporate earnings, the Iran war and a powerful rally in AI stocks are driving market activity, but that could change as investors turn their attention to what is likely to be a polarized election.

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.

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

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.

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

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.

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. The Iran war has pushed consumer sentiment in April 2026 to its lowest in history.

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.

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.

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.

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 2% of GDP.

Footnote(s)/Important information:

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

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.

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.

Midterms: historically choppy markets followed by late-year rally

Since 1931, midterm years have started with volatile S&P 500 returns, with stocks often climbing as the election nears.

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.

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.

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:

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.