Weekly "Focus" and Capital Insights
Bradley Goldhar - Jan 27, 2023
One of the largest money managers in the world is Capital Group, a global investment firm that manages over US$2 trillion for investors around the world.
One of the largest money managers in the world is Capital Group, a global investment firm that manages over US$2 trillion for investors around the world. They are based in Los Angeles and like most global equity managers they had a very challenging 2022. Capital Group is recognized for having an extensive research team who contribute high conviction investment ideas alongside a group of experienced portfolio managers. Each year they publish an excellent report, Outlook - Long-term perspective on markets and economies, which we thought you might be interested in.
Click on this link for Highlights in this year’s report:
- Recessions are inevitable but the pain won’t last forever
- Stocks typically recover before recessions end
- If history is a guide, they could rebound about six months before the economy does
- Bonds should once again offer diversification from equities
- 2022 was the first time in 45 years that both stocks and bonds declined in tandem
- Inflation has reached a peak, but the market may be too optimistic on progress
- Look for dividends to account for a larger portion of total returns
- Historically, dividends have contributed 38% of the total
- Health care may lead the next bull market
- Capital spending super-cycle could power an industrial renaissance
Please click "Focus" for this week's report from our economics team.
Have a great weekend, Brad
Bradley Goldhar | Senior Portfolio Manager and Senior Investment Advisor
BMO Nesbitt Burns Inc. | 1 First Canadian Place | 39th Floor | P.O. Box 150 | Toronto ON M5X 1H3
416.359.6650 (direct) | 416.359.7219 (fax) | 1-800-263-1883 (toll free)
bradley.goldhar@nbpcd.com www.goldhargroup.com