Capital Group 2025 Midyear Outlook Report

As we reach the midpoint of 2025, the change we’ve witnessed since the start of the year is staggering and has translated into a high level of market volatility. We are in the middle of a fundamental restructuring of the geopolitical order that we’ve known since the end of World War II — politically, militarily, and economically.

Capital Group's Midyear Outlook report offers an overview of those opportunities as they see them. Scroll to the end of the summary to download the full report.

Economic outlook: Embrace the unknown

There are many ways to describe the outlook for the U.S. and world economies. But at the midpoint of 2025, one word has risen to the top: uncertainty.

Equity outlook: World in transition opens opportunities

After years of being overshadowed by growth and tech stocks, dividend-paying stocks are back in the spotlight.

Bond outlook: Income is back, but economic risks mount

Bonds are poised to ride out potential market volatility in the second half of the year, providing investors with solid income opportunities and relative stability. Given slowing U.S. economic growth and cooling inflation, bonds should provide a smoother ride for investors amid high uncertainty over U.S. trade and immigration policies, rising debt levels, and worsening conflicts in Ukraine and the Middle East.

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Capital Group 2025 Midyear Outlook Report

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.