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With global equity markets selling off sharply in the first few days of August, investor sentiment has quickly shifted from exuberance to apprehension. At the time of writing, concerns about softening U.S. economic growth, high interest rates and technology sector valuations have combined to shake confidence in a market that was previously priced for perfection.
At such times of stress in the markets, it’s important to take a step back, review the fundamentals, and determine whether the current volatility is perhaps an overreaction or an expected correction after a long stretch of strong returns.
Here are five views from Capital Group investment professionals assessing the latest, fast-changing market developments.
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