Capital Ideas

Investment insights from Capital Group

Categories
Market Volatility
Volatility is back, but don’t give up on 2018

Markets have finished most years with positive returns, even after a sharp midyear decline



Volatility has returned to global markets in 2018, but investors should not assume the worst for the remainder of the year. Temporary swings are a normal part of equity markets and are often influenced by short-term news such as earnings announcements and economic data releases. In fact, it’s unusual for markets to be as calm as they were in 2017. And even after sharp declines, market turnarounds can happen quicker than one might think. Intrayear declines in the S&P 500 have averaged 14% since 1976, but index returns were positive in 31 of those 41 annual periods. The lesson for investors is it often pays to remain calm and stay the course.



Past results are not predictive of results in future periods.

Our latest insights

Hear from the investment team.

Don't miss out.

Get the Capital Ideas newsletter in your inbox each week.

*REQUIRED

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.