In aggregate, S&P 500 companies have registered higher earnings for five consecutive quarters and appear on track to do so again in the last three months of this year. While the rise in earnings can partly be attributed to more stable energy prices, confidence among U.S. consumers is also a key factor. U.S consumer confidence is at its highest level in nearly two decades. Companies have experienced a nice boost from U.S. consumer spending, which accounts for over two-thirds of the U.S. economy. S&P 500 earnings growth and consumer confidence growth have trended similarly since the early 1990s, meaning U.S. consumers’ attitudes may be a good barometer of what to expect from corporate earnings. In the end, consumers may determine how long the equity bull market will last in the U.S.
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 mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants' plan provider or employer.
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., 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.
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.