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Capital Group | 5 reasons why equities could defy the odds


The dominance of megacap tech stocks has prompted debate around how much higher equity markets can go, especially in the US.

In our view, even accounting for the recent climb in stocks, overall valuations do not appear to be stretched. Global corporate earnings have bounced back from a near trough and are expected to improve further from here. Moreover, moderating inflation and declining interest rates could create a highly favourable backdrop.