United States
Global stocks declined for a third consecutive quarter, pressured by high inflation, rising interest rates and recession fears in many countries. Following a robust summer rally, stocks resumed a sharp selloff in mid-August as inflation soared and central banks around the world reconfirmed their commitment to tighten monetary policy.
All sectors of the MSCI All Country World Index lost ground, led by a steep drop among communication services stocks. The rate-sensitive real estate and utilities sectors also fell sharply. Energy and consumer discretionary stocks posted relatively better returns, though both sectors slipped during the quarter. A strong U.S. dollar put added pressure on international and emerging markets.
Bond markets tumbled as the U.S. Federal Reserve and many other central banks moved aggressively to hike interest rates amid mounting inflationary pressures. In some major economies, consumer prices rose by 8% to 10% annualized, surpassing 40-year highs. The European Central Bank raised rates for the first time in more than a decade, ending an era of negative rates in the eurozone.
MSCI indexes are free-float-adjusted, market-capitalization weighted indexes. Developed market index results reflect dividends net of withholding taxes. Emerging market index results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. Each index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. MSCI All Country World Index (ACWI) is designed to measure results of more than 40 developed and emerging equity markets.
United States
International Equities
Asset Allocation
RELATED INSIGHTS
Asset Allocation
Market Volatility
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.
There may have been periods when the results lagged the index(es). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
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.