2018 Outlook: It’s Time for Balance and Flexibility | Capital Group

Investment Insights

2018 Outlook: It’s Time for Balance and Flexibility

Despite the concerns surrounding financial markets, 2017 produced healthy returns. What will 2018 hold in store? In our 2018 Outlook, we give our perspective, including:

  • While global economies continue to gain ground, market levels suggest a careful approach.
  • Elevated valuations underscore that research is critical to uncover value.
  • The rally in emerging market equities may have room to run.
  • Fed rate hikes don’t have to translate to bond losses.

Better Opportunities Might Be Found Outside the U.S.

This chart shows that the market capitalization of U.S. stocks is well above the country’s share of GDP, while the opposite is true in emerging markets.
This chart shows rocks stacked while balancing on a rocky shore.

Download our 2018 Outlook to learn more about the challenges and opportunities ahead for investors.

This chart displays the changing composition of emerging market equities, with tech stocks growing in influence.

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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. 

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.