2025 OUTLOOK
The world economy remains a mix of leaders and laggards. As inflation eases and central banks cut interest rates, the United States and India continue to drive global economic activity while Europe and China seek to kickstart growth. Here's what to watch for in the months and years to come.
Sources: Capital Group. Country positions are forward-looking estimates by Capital Group economists as of December 2024 and include a mix of quantitative and qualitative characteristics (in USD). Long-term tailwinds and headwinds are based on structural factors such as debt, demographics and innovation. Near-term tailwinds and headwinds are based on cyclical factors such as labor, housing, spending, investment and financial stability. Circles represent individual economies. Circle sizes approximate the relative value of each economy and are used for illustrative purposes only.
EQUITY OPPORTUNITIES
The grip Big Tech has had on market returns shows signs of loosening, due in part to the vast build-out required to deliver on AI's promise. Market participation broadened beyond tech in 2024 as dividend payers, value stocks and non-U.S. companies generated strong gains. Find out why.
- Jared Franz, U.S. Economist
FIXED INCOME OPPORTUNITIES
The era of TINA, or "there is no alternative" to stocks, may be over. Income opportunities from bonds could be the best in decades, and investors now have more options. Get our fixed income team's latest thinking.
Sources: Bloomberg Index Services Ltd., FactSet, Standard & Poor's. Earnings yield is equal to the forward expected earnings-per-share divided by the share price. Yield to worst is the lowest yield that can be realized by either calling or putting on one of the available call/put dates or holding a bond to maturity. As of November 30, 2024.
*Source: Marketing Support: The Advisor View, May 2025, June 2024, May 2023, July 2021, June 2020; Fund Intelligence, February 2020. FUSE Research surveys of 500-1,000 advisors identifying the “most-read thought leaders.” Survey was not conducted in 2022.
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