Investors have been gravitating toward stocks with price momentum, but higher interest rates should foster more diversity -- with value getting greater consideration as a driver of equity selection.
Concerns about economic growth and geopolitical risks have weighed on international markets, but a softening of U.S.-China trade rhetoric and weakening dollar could spark a new wave of outperformance.
ClearBridge has been and continues to be a leader in incorporating ESG into its investment process, as well as in working with companies to generate direct impact on ESG-related issues.
The green light just given to the AT&T/Time Warner merger underscores the changing dynamics at work in the rapidly consolidating media sector.
International stocks are gaining traction with investors -- but passive strategies may not be the best guide to opportunity. ClearBridge's Eliza Mazen explains why an active approach to diversifying international growth stocks may make more sense.
Chart of the Week
Chart Courtesy of Western Asset Management. Source: U.S. Bureau of Labor Statistics, as of Nov 30, 2018. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
China’s growth figures were unexciting, but the trade picture may be improving; U.S. consumers spent well in November; Mario Draghi stuck to the ECB’s plan, but didn’t sound cheerful about it.
Should we worry about the recent inversion of 3-5 year Treasury yield curve? The ClearBridge Recession Risk Dashboard suggests concerns may be overblown.
With control of the Senate and House now divided, and the prospects for a recession still muted, the S&P 500 should continue to march higher in 2019 -- with areas of potential opportunity for active managers in specific sectors.
As monetary policy normalizes and the economic cycle matures, volatile days like those just experienced may become more common. However, the end of the cycle appears to remain in the distant future, allowing investors to find opportunity amid market anxiety.
Anatomy of a Recession:
ClearBridge's Recession Risk Dashboard continues to point to healthy backdrop for the U.S. economy and further continuation of an already record-setting expansion, with equity markets benefiting from buybacks and other shareholder-friendly moves through the coming quarter.
The electric vehicle (EV) market continues to expand, and with it, opportunities for investors – not only in auto manufacturing, but also in the parts, materials and adjacent industries.
Economic conditions are shifting, but the ClearBridge Recession Risk Dashboard still points to expansion rather than recession.
Fears that drug pricing will collapse have pushed many investors away from this sector, yet we see drug spending becoming less, not more, of an issue going forward: given current valuation levels, the potential for stronger returns is very real.
Water conservation and stewardship initiatives are helping companies from manufacturing to consumer goods to gain competitive advantages and manage future risks.
The contrast between current economic momentum and monetary policy in the U.S. versus the rest of the world has led to lower valuations in international and emerging markets (EM) stocks -- but a change could be coming soon.
Though trade war tensions could sidetrack investors, history suggests markets should rally after midterm elections -- with recession risks low going into Trump's third year in office.
Italy’s failure to form a government has caused bond spreads to widen sharply and could cause the ECB to delay its rate tightening plans. If so, that could pressure many European financial stocks and make the outlook for bank earnings growth much less bullish.
Trump’s antagonistic approach to redefining U.S. trade relationships is creating challenges now, but could eventually lead to a “trade peace” that expands global commerce.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.