Global investing has experienced a subtle but defining shift in recent years, and Capital Group portfolio manager Rob Lovelace has been watching it like a hawk. This “new geography” has given rise to what he calls a new breed of company — one whose business model is probably more resilient as our global trade infrastructure changes. In this episode, Rob explains how these dynamics have shaped his approach to investing and shares formative stories from his 31-year career.
A powerful rally in U.S. stocks since the November elections has underscored a long-running trend in the financial markets: U.S. stocks have outpaced developed-market equities in Europe and Japan for 86 months on a rolling three-year basis. Despite the dominance of U.S. stocks during this seven-year period, there are many compelling reasons to remain invested in international stocks as part of a well-diversified portfolio.
Technology has not only changed the way we live, it has transformed the business landscape. Tech companies are among the market’s new profit engines. And more broadly, technology has made the world smaller – allowing trends to spread at lightning speed and companies to compete on a global scale more quickly.
British voters surprised the world on Thursday by approving a proposal to abandon the European Union, with 51.9% of the vote in favor of leaving and 48.1% in favor of remaining. Global markets and currencies reacted negatively to the news, evidenced by a spike in volatility and declines across all major equity markets. Stocks gave up ground after rallying the prior week in the run-up to the vote.