“Without substantial improvements in U.S. Growth, prepare to see more volatility” – especially in cyclical sectors, notes ClearBridge Large Cap Growth Manager Margaret Vitrano.
Though she’s made her name investing for the long term, Margaret Vitrano is very aware of short-term shifts in the market.
Case in point: the anticipation of pro-growth policies being implemented in Washington that continues to underpin many cyclical stocks. In her own words: “We are at a fork in the road…either we see substantial improvements [in economic growth] or prepare to see more volatility”.
In a similar vein, she expects the current skepticism about health-care stocks based on the ongoing debate about affordable care to eventually pass – but not before creating opportunities to invest in strong companies at attractive prices. In her view, current short-term pricing issues “will work themselves out…we are more focused on whether companies are successful in innovating long term” and have the potential to succeed, whatever may emerge from Washington.