Clues and commentaries on the global prospects for stocks, bonds and alternatives.
Selected Document
John Goode Market Review
ClearBridge | October 17,2014

John Goode discusses multiple issues of current importance for the economy and financial markets

  • The current bull market is one of the longest on record and it is understandable that investors may be questioning whether we're nearing a major market top.
  • We believe the stock market continues to have "legs" and that the liquidity and interest rate environment remains supportive of meaningfully higher stock prices, but if the stock market continues working its way higher and meaningful gains result over the next six months, then de-risking may be an approprate consideration.
  • In the sixth year of a bull market it seems reasonable to conclude that capital gains opportunities over the next few years may be more constrained than in the last few years. As such, dividends and dividend growth may become more important within the context of total return.
  • With the stock market dramatically higher than a few years ago, share buybacks make less sense and we suspect competitive and other forces will lead to higher spending on capital equipment.