Markets in Focus

A steady flow of concerning news from China has caused an extended downturn for emerging market stocks. Still, in his interview with Matt Orton, CFA, Chief Market Strategist at Raymond James Investment Management, renowned EM investor Kevin T. Carter noted that he believes the long-term growth trends for these markets remain intact. A rising middle-class is eager to purchase the consumer goods that have long been available to residents of developed markets. The growing use of smartphones is also making access to consumer goods much easier. Carter believes India, in particular, could be the next major EM growth story.

A turbulent 2022 for all categories of stocks and a long-term cycle of outperformance from large caps have caused many investors to lose confidence in small caps. Yet the long-term outlook for small caps could be bright, according to Matt McGeary, CFA, a manager of small- and mid-cap strategies at Eagle Asset Management, and Tim Miller, CFA, a manager of small-cap portfolios at Scout Investments. They believe that a number of trends, such as onshoring, rising M&A activity, and expanding AI capabilities, could all help propel long-term growth for small-cap companies.

Now that the era of “growth at any price” has ended, newly converted value enthusiasts are questioning margins and the true return on their investments. Tariq Siddiqi, CFA, Senior Research Analyst at Eagle Asset Management, refuses to follow the crowd and keeps growth profiles at the forefront, pinpointing companies best positioned to capitalize on persistent secular trends. For Siddiqi, these opportunities include cybersecurity, the shift to cloud computing, the “Internet of Things" (IoT), and the growth of artificial intelligence.

Bonds are once again asserting their role as a store of value, portfolio diversifier, and income generator. James Camp, CFA, Managing Director of Fixed Income and Strategic Income at Eagle Asset Management, and Burton Mulford, CFA, Portfolio Manager overseeing all of Eagle's municipal strategies, delve into the likely course of monetary policy, its economic impact, and the implications for investors.

Inflation was the dominant story for the market in 2022, but not the only story. Beneath the surface, factors such as growth vs. value often shifted rapidly, temporarily altering the character of the market. Steve Singleton, Head of Portfolio and Investment Risk at Raymond James Investment Management, and Peter M. Schofield, CFA, Senior Portfolio Manager for Chartwell Investment Partners’ Dividend Value Strategy, discuss whether 2023 could bring more of these inflection points and why – plus how investors can leverage factor investing to navigate market volatility.

With recession looming in 2023, it’s worth considering how much the Fed can even do at this point, and whether monetary and fiscal policies have a chance of cushioning the shock once again. Jason Richey, CFA, Co-Portfolio Manager at Cougar Global Investments, provides insights on U.S. versus international markets, minimizing risk, and positioning portfolios for an economic slowdown

Global storms are brewing, and a key question for investors is whether a global recession is inevitable. Antonina Tarassiouk, fixed income analyst at Reams Asset Management, and David Vaughn, chief investment officer for non-U.S. and global strategies at ClariVest Asset Management, discuss possible opportunities in emerging markets that may be poised for growth, despite recession fears.

The credit market has been impacted by duration shocks, high inflation, and rising borrowing costs, leading to deteriorating credit risk. Andy Toburen, CFA, Senior Portfolio Manager at Chartwell Investment Partners, unpacks it all and shares how investors can navigate the dynamic credit markets and find areas of opportunity.

The business cycle and the strength of the consumer are expected to play key roles in setting the direction of the financial sector in the rest of 2022. Enrique Acedo, Research Analyst on the Equity Income Investment Team at Eagle Asset Manager, joins Matt Orton to discuss signs of worry and signs of promise in financials – an industry group that it is anything but uniform