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Capital Group Investment Themes 2023




Capital Group have recently published an excellent report on Investment Themes for 2023 which can found here: https://www.capitalgroup.com/content/dam/cgc/tenants/europe/documents/insights/2023/ii-10-investment-themes-for-2023(en).pdf


A summary is provided below.

  1. Dividend Decade: Dividends are making a comeback. However, not all dividend payers are equal. The focus is on seeking sustainable and growing dividends.

  2. New Growth: Growth opportunities are broadening beyond US tech stocks to include innovative companies across various industries.

  3. Global Champions: Nimble multinationals can respond to a changing world regardless of challenging local conditions. These companies are expected to thrive in the new market environment.

  4. Golden Age of Healthcare: Pharmaceutical companies with deep pipelines could propel this sector as a leader of the next bull market. The healthcare sector is witnessing a golden age of drug development.

  5. Industrial Renaissance: A CapEx super-cycle could drive opportunities for industrial companies and revive manufacturing. This could lead to a resurgence in the industrial sector.

  6. Reshoring Supply Chains: The shift to regional supply chains will create new opportunities in automation, construction, and energy. This shift is driven by the need for more resilient and reliable supply chains.

  7. Core Strength: After a tough year, bonds should once again offer diversification from equities. This could make bonds an attractive investment option once again.

  8. Credit Comeback: As growth slows, credit fundamentals have become key to identifying attractive issuers and industries. This could lead to a comeback in credit investments.

  9. Selective High Yield: High yield is once again high yielding. The focus is on being opportunistic as credit quality improves. This could make high-yield investments more attractive.

  10. Revisiting 60/40: Asset allocation isn’t broken − it’s just evolving. A one-size-fits-all approach no longer suits every investor. This suggests a need for more tailored investment strategies.

Please note that these themes are based on the current market conditions and could change as the market evolves. Always consider your personal investment goals and risk tolerance before making investment decisions.


If you have any more questions about the document or need further clarification on any points, feel free to ask!

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