BDX - ClearBridge Appreciation Strategy Q1 2024 Portfolio Manager Commentary

2024-04-10 01:50:00 ET

Summary

• ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.
• Although technology and AI remain a dominant part of the market narrative, benchmark performance has broadened significantly in the current rally.
• Although we remain concerned a QT-driven liquidity drain is a matter of when and not if, we expect the Fed to ensure ample liquidity exists through the presidential election.
• Near-term risks to the economy have seemingly abated, though we continue to monitor the same risks that existed at the outset of the interest rate hiking cycle. In fact, we would argue those risks have heightened.

By Scott Glasser | Michael Kagan | Stephen Rigo, CFA

Paths to Outperformance Broaden Beyond Tech

Market Overview

The soft landing rally that took hold in November 2023 continued in 2024’s first quarter. The S&P 500 Index advanced in each month of the quarter, bringing the benchmark’s winning streak to five consecutive months and a 27% cumulative return. The S&P 500’s 10.56% quarterly advance was the 11th best start to a year since 1950, with the index making a record high in nearly 40% of the period’s trading days....

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