Capital Group’s Midyear Outlook argues that market resilience has remained intact despite geopolitical conflict, elevated inflation and election uncertainty, supported by AI investment, healthcare innovation and a more attractive bond market.
- Historical data show that equity selloffs triggered by oil-supply disruptions have typically been short-lived, with markets delivering positive returns over one- and two-year horizons following past geopolitical shocks.
- The firm sees opportunities extending beyond technology, highlighting energy, utilities and materials as potential beneficiaries of AI-related infrastructure spending and power demand.
- Bonds have regained their portfolio role, offering higher yields, lower duration risk and stronger diversification potential than during the low-rate environment of 2022.
Explore the full outlook for deeper insights into market resilience, election-year dynamics, AI investment trends and portfolio positioning.
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