Ahead of the curve: Q2 2025 outlook
Ahead of the curve: From divergence to convergence
Following recent events, the dynamic between the European and U.S. economies appears to have shifted from one of divergence to potential convergence, with a revitalised EU and heightened risks that potentially lead to slower American growth. Against that backdrop, Capital Group believes fixed income investors should continue to focus on the long-term fundamentals. Yields, which are a good proxy for long-term total returns, remain high and can therefore absorb a significant amount of near-term volatility.
Fixed Income Perspectives: Q2 2025
Capital Group discusses how U.S. growth momentum has slowed as recession risks appear to be rising in the face of tariff volatility. The asset manager’s key bond convictions include a preference for diversified sources of income from multiple credit sectors.
Capital Group’s 2025 capital market assumptions
Capital Group’s 2025 capital market assumptions provide a favourable long-term outlook, expecting mid-to-high-single digit returns for stocks and low-to-mid-single digits for bonds. That said, these expectations are lower over a 20-year horizon compared to last year.
Podcast: The Analyst View
Tune in to The Analyst View for exclusive investment insights in under 20 minutes. In each episode, Capital Group dive deep with their analysts to bring you discussions on sectors and themes shaping the investment landscape, including AI, the banking system, and U.S. tariffs.
