CEM News and Press, ClearBridge MLP and Midstream Fund Inc. From 10/31/22

Summary Having suffered through a sharp decline in earnings multiples, small cap growth stocks held up well in a volatile quarter marked by a sharp upward ratcheting of interest rates. The Strategy underperformed its benchmark, primarily due to weakness among health care holdings ...

Summary The market is greatly overestimating the effect of higher rates and inflation on durable goods, materials and financial companies, while underestimating the impact on speculative assets. The Strategy underperformed its Russell 2000 benchmark, as positive contributions from...

Summary Equity markets continued their downward slide during the quarter, as investors grew increasingly anxious over aggressive interest rate increases and the growing likelihood of a recession. The Strategy underperformed its benchmark, as positive contributions in industrials a...

Summary Equities continued their slide during the third quarter, as investors grew increasingly anxious over the combination of aggressive interest rate increases and a growing likelihood of recession. Health care proved an impediment to relative performance, as the evaporation of...

Summary Markets beginning to price in a reasonable chance of recession, both domestically and abroad, led to dramatic moves across various often uncorrelated asset classes, with wide ranging implications across global economies. The Strategy held up well relative to the Russell 10...

Summary Weakness in the Strategy’s consumer discretionary and technology names and underweights to several outperforming mega cap growth stocks weighed on performance relative to the benchmark. Weakness in the Strategy’s consumer discretionary and technology names an...

Summary The Strategy outperformed for the second quarter in a row, thanks in large part to positioning adjustments made over the last year in preparation for these extreme macro headwinds. We enhanced a focus on sturdy, secular growth businesses with three new additions to the portfol...

Summary OPEC+ agreed to impose deep output cuts of 2 million barrels per day starting in November, expecting to spur a recovery in crude prices, despite calls from the U.S. to increase production to prop up the global economy. The European Union has approved the eighth round of sa...

Summary Major indices were mostly lower (Dow finished up) on the week as the earnings season unofficially has begun. We also saw a hotter-than-expected CPI. Discounts are widening out once more and approaching levels not seen since the depths of the March 2020 Covid Crash. Discoun...

Summary Energy infrastructure companies continue to make strides with clean energy initiatives – announcing new partnerships, projects, and acquisitions. From renewable fuels to carbon capture to hydrogen, the provisions in the Inflation Reduction Act support clean energy i...