.png)
Artificial Intelligence
Categories
U.S. Equities
Which sectors do well during bear markets?
Higher yielding stocks have typically been more resilient during market corrections.
Market volatility was near record lows in 2017, but uncertainty has returned this year. Trying to time markets by indiscriminately selling equities is rarely a winning strategy, but portfolio protection with income-producing assets could be. Historically, dividend payers have tended to outpace low-yielding companies during market downturns, since dividends are seen as a steadier and more predictable source of returns than price appreciation. In fact, returns from the four highest-yielding sectors tended to beat the market during the last seven S&P 500 corrections of 15% or more. Traditionally volatile sectors such as consumer discretionary and technology should not be ignored though, as they include market leaders that have exhibited strong earnings power. Investors may want to consider exposure to both growth and dividend-oriented securities to create a well-rounded portfolio.
Learn more about
Past results are not predictive of results in future periods.
Our latest insights
-
-
Target Date
-
Technology & Innovation
-
World Markets Review
-
Participant Engagement
This is the headline for the Newsletter promo. Customize the message.
RELATED INSIGHTS
-
Market Volatility
-
Dividends
-
Artificial Intelligence
Don’t miss out
Get the Capital Ideas newsletter in your inbox every other week
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.
American Funds Distributors, 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.
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.