Investment insights from Capital Group
Stocks have historically been a leading indicator of the economy
Sources: Capital Group, Federal Reserve Board, Haver Analytics, National Bureau of Economic Research, Standard and Poor’s. Data reflects the average of completed cycles in the U.S. from 1950 to 2021, indexed to 100 at each cycle peak. Other data includes all completed cycles from 1/1/50–10/31/22. Industrial production measures the change in output produced by manufacturers, mines and utilities and is used here as a proxy for the economic cycle. Past results are not predictive of results in future periods.
Dividends have historically been a larger percentage of total return
Source: S&P Dow Jones Indices LLC. 2020s data is from 1/1/26 through 11/30/22. *Total return for the S&P 500 Index was negative for the 2000s. Dividends provided a 1.8% annualized return over the decade. Past results are not predictive of results in future periods.
Large drug makers are positioned to fund their own growth
Sources: Capital Group, FactSet, MSCI, Refinitiv Datastream, Refinitiv Eikon. Figures above represent the aggregated value in U.S. dollars of cash and short-term investments across MSCI World Pharmaceuticals constituents. As of September 30, 2022.
Rising capital spending could spark a renaissance for capital equipment companies
Sources: Capital Group, FactSet, MSCI. In current U.S. dollars. All figures represent estimates from FactSet, including projected figures for 2022 and 2023. Data as of October 31, 2022.
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