The U.S. economy continues to show resilience, and appears to be "aging in reverse" as it transitions from late-cycle characteristics back to mid-cycle. Meanwhile, the world’s major economies are heading down divergent paths in 2025, and America’s role as the chief driver of global growth may expand further.
“Instead of falling into recession, as many predicted a year ago, the U.S. economy remains strong, leading the world at a time when others are stumbling,” comments Martin Romo, Capital Group’s Chief Investment Officer. “Looking ahead there are meaningful opportunities for investors who focus on flexibility and research-driven active management. Successful investing is a long-term endeavor, and while it can be easy to retreat to the sidelines when faced with market gyrations or geopolitical uncertainty, the best approach is to stay invested and remain focused on those long-terms goals, without being distracted by the daily noise.”
Capital Group’s 2025 Investment Outlook describes the major investment themes impacting global markets and asset classes, as well as global inflation trends and where to consider investing in a rate cutting environment. Pramod Atluri, fixed income portfolio manager, comments, “The Fed will no longer be as center stage. Interest rates don’t appear very restrictive to economic growth.”
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