Select your location

Who are you ?

Select another location

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Qui êtes vous ?

Sélectionnez un autre emplacement

Qui êtes vous ?

Sélectionnez un autre emplacement

Wer bist du ?

Wählen Sie einen anderen Ort

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Who are you ?

Select another location

Who are you ?

RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1 OR 2

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

2023 Investment Outlook

Our annual Outlook report offers long-term perspective on markets and economies

2023 Outlook webinar

Our investment team shares the changes they see coming in 2023.

2023 MARKET OUTLOOK

Will the global economy tip into recession?

Most of the world’s economies are in or near recession, thanks to slowing growth, war in Ukraine, a lingering pandemic, high inflation and rising interest rates. One potential bright spot? Recessions historically haven’t lasted very long — about 10 months on average. 

An infographic illustrates the seismic shifts Capital Group investment professionals expect to define the next decade of investing: From falling rates to rising rates, from intangible products to physical assets, from global supply chains to reshoring supply chains, from narrow equity leadership to broad equity leadership.

A new reality for investors

Investors may be hoping for a return to normal after interest rates stop rising and inflation subsides. But markets are experiencing several seismic shifts that will likely define the next decade of investing. 

U.S. INVESTMENT OUTLOOK

U.S. economic outlook for 2023

Weighed down by high inflation and rising interest rates, the U.S. economy is expected to contract by 2% in 2023, says economist Jared Franz. Key for investors is that stocks have tended to rebound before the economy, with the strongest gains often immediately following a bottom.

A line graph compares the average cycle for the S&P 500 and industrial production from 1950 to 2021 indexed to 100 at each cycle peak. Industrial production measures the change in output produced by manufacturers, mines and utilities and is used here as a proxy for the economic cycle. The illustration shows that the stock market has tended to peak seven months prior to the start of a recession and recover six months before a recession ends.

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. 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.

Searching for the next market leaders

New market leadership often emerges at the end of a bear market. Learn why select health care, industrial and technology companies could be well positioned.

A line graph compares the average cycle for the S&P 500 and industrial production from 1950 to 2021 indexed to 100 at each cycle peak. Industrial production measures the change in output produced by manufacturers, mines and utilities and is used here as a proxy for the economic cycle. The illustration shows that the stock market has tended to peak seven months prior to the start of a recession and recover six months before a recession ends.

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. 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.

INTERNATIONAL INVESTMENT OUTLOOK

International equities outlook for 2023

Weak economies in Europe and Japan, various troubles in emerging markets and a strong U.S. dollar have clouded the forecast for international equities. But avoiding them altogether would mean ignoring some of the largest and most successful companies in the world.

The image represents a quote from equity portfolio manager Gerald Du Manoir: “There are global companies generating revenue all over the world. I’m not overly concerned about where they get their mail.”

It’s about companies, not economies

Even if you think economies outside the U.S. are headed for more trouble, there are important reasons to consider investing in international companies. Here are five:

FIXED INCOME INVESTMENT OUTLOOK

Bond market outlook for 2023

Interest rate turmoil hit bonds hard in 2022. But those painful losses may help set the stage for income down the road. And with the U.S. Federal Reserve signaling an end to its hiking cycle is near, bonds may once again offer some stability.

How could bonds fare as the Fed slows rate hikes?

After a tough year, bonds should once again offer diversification from equities and, therefore, a measure of protection when stock markets swing.

Get the 2023 Outlook report

Long-term perspective on markets and economies

Voted #1 for thought leadership three years in a row*

*Source: Fund Intelligence, February 20, 2020. FUSE Research survey of nearly 600 advisors identifying the “most-read thought leaders.” Marketing Support: The Advisor View, June 2020. FUSE Research survey of more than 700 advisors identifying the “most-read thought leaders.” Marketing Support: The Advisor View, July 2021. FUSE Research survey of 720 financial advisors identifying the “most-read asset manager thought leaders.”

Never miss an industry-leading insight

The Capital Ideas newsletter delivers weekly investment insights straight to your inbox.

FINRA’s BrokerCheck | Check the background of American Funds Distributors, Inc., on FINRA’s BrokerCheck.

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

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.

Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.

American Funds Distributors, Inc., member FINRA.

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.