MACROECONOMIC PERSPECTIVES
Economic outlook: Mild recession, strong recovery?
This may be the most widely anticipated recession in history. Capital Group economists expect the global economy to experience a mild recession in the months ahead. The question is: What comes after?
Are you ready for a market rebound?
Strong consumer spending in the U.S., moderating inflation and an expected decline in interest rates could produce a more robust recovery than prior cycles.
EQUITY OPPORTUNITIES
Stock market outlook: Broader opportunity set emerges
Equity market leadership has expanded to include energy, health care and industrial companies, as well as value-oriented and dividend-paying stocks. As a result, returns have been less dominated by a handful of U.S. companies and more evenly distributed around the world.
Dividends have reached new heights
Global companies paid more than $2 trillion in dividends for the 12 months ended May 31, 2023, up more than 12% from the previous 12. But not all dividend payers are created equal.
FIXED INCOME OPPORTUNITIES
Bond outlook: Fed pause leaves many paths to income potential
As recession fears heat up and the Fed nears the end of its rate hiking cycle, bonds may now offer relative stability and higher income potential.
Is the best yet to come for bonds?
Rising recession risk spells higher income potential and presents opportunities for fixed income investors.
Voted #1 for thought leadership by advisors*
*Source: Marketing Support: The Advisor View, May 2023, July 2021, June 2020; Fund Intelligence, February 2020. FUSE Research surveys of 500-1,000 advisors identifying the “most-read thought leaders.” Survey was not conducted in 2022.
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