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

“Drill, baby, drill” once was the mantra in the energy patch. But for the past decade, deep value investors have set the tone, demanding dividends and saying, “Show me the money.” Now the industry again is in flux, with no shortage of catalysts: pandemic, war, inflation, looming recession, growth in alternative fuels, and more. Explore headwinds, tailwinds, and trends in the energy sector with Eric Mintz, CFA, Portfolio Manager on the small- and mid-cap growth teams at Eagle Asset Management, and Eric Chenoweth, CFA, Senior Investment Analyst on the mid-cap equity team at Scout Investments.

No one thought 2022 would be easy, but the war in Ukraine, with its shocks to global energy and commodity markets, has made taming inflation even harder. James Camp, CFA, Managing Director of Fixed Income and Strategic Income at Eagle Asset Management, shares his perspective on credit and equity markets, the “creative destruction” rippling through the U.S. economy, and how the U.S. Federal Reserve doesn’t have any good choices, just “the lesser of many evils.”

It would be nice if U.S. equities could find a bottom and recover without a recession. That’s what normal market activity often has looked like in the past. Trouble is, we haven’t had a lot of normal market activity in the last 15 years, says Jason Richey, CFA, Portfolio Manager at Cougar Global Investments. And that now makes it harder for everyone: central banks, corporate management, and investors alike. Richey shares his thoughts on the impact of inflation, its effects on the consumer, and how, ultimately, investors can position in a markedly bearish environment.

It’s not new for companies to report on their efforts to curb greenhouse gases and fight climate change, but there are few dependable and universal ways to compare one company to the next. Now the SEC has proposed new rules aimed at standardizing such disclosures. Joy Facos, Head of Sustainable Investing and Corporate Responsibility at Carillon Tower Advisers, explains why the proposed rules will help empower investors to make meaningful judgments about how companies’ work to sharpen the environmental, social, and governance (ESG) focus of their models might – or might not – create long- term value.

Where is blockchain technology right now? Think of the internet in the late 1990s: There’s worlds of potential to transform the economy, but also every kind of practical question to be figured out. Matt Orton, CFA, Chief Market Strategist at Carillon Tower Advisers, talks with Tariq Siddiqi, CFA, Senior Research Analyst at Eagle Asset Management, about how the blockchain isn’t just for cryptocurrency, what makes it a candidate to revolutionize entire industries, and why investors should look at it as a long-term driver of secular growth.

The inflation of 2021 had no shortage of drivers – including spiking consumer demand, supply chain disruptions, and unprecedented monetary and fiscal support for the economy. But what about the inflation of 2022? Rising housing costs are likely to continue to be a factor, while base effects could contribute to inflation peaking. Matt Orton, CFA, Chief Market Strategist at Carillon Tower Advisers, talks with John Lagowski, CFA, Research Analyst with Eagle Asset Management, about inflation’s likely direction and what investors should think about in the coming year.

Investors once were used to seeing momentum swing between growth and value stocks in a classic economic cycle. But the pandemic subverted all of that, creating shorter mini-cycles as cases rose and fell. Now with interest rates on the rise, a new chapter might be about to unfold. Matt Orton, CFA, Chief Market Strategist at Carillon Tower Advisers, talks with John Indellicate, CFA, Co-Portfolio Manager at Scout Investments, Michael Waterman, CFA, Portfolio Manager at ClariVest Asset Management, and Steve Singleton, Head of Risk at Carillon Tower Advisers, about 2022’s emerging opportunities in the seesaw world of factor investing.

Energy has seen its weight decline meaningfully across broader market indices over the past 10 years. But it was the best-performing sector in 2021 and many analysts are optimistic heading into 2022. Eric Chenoweth, CFA, senior investment analyst on the mid-cap equity team at Scout Investments, joins Matt Orton, CFA, Chief Market Strategist at Carillon Tower Advisers, to explore what accounted for energy’s outperformance in 2021 and whether those drivers are sustainable.

During the gold rush, the real money was made not by miners but by the businesses who sold the miners their picks and shovels. Now semiconductors are poised to be the picks and shovels of the coming decade, said Derek Smashey, CFA, Co-Portfolio Manager at Scout Investments. Smashey joins Matt Orton, CFA, Chief Market Strategist at Carillon Tower Advisers, to examine what happened to the reflation trade over the last year and what to watch for in 2022 and beyond.

Concentration in the small-cap indices is presenting challenges for investors and active managers. Peter Crivelli, Senior Vice President at Carillon Tower Advisers, joins Matt Orton, CFA, Carillon’s Chief Market Strategist, to navigate opportunity in the sectors taking up the most space.

Exchange-traded funds (ETFs) have grown in popularity and breadth since the early 2000s. How can investors assess potential pitfalls and conduct proper due diligence? Jason Richey, CFA, Co-Portfolio Manager at Cougar Global Investments, joins Matt Orton, CFA, Chief Market Strategist at Carillon Tower Advisers, to trace the history of ETFs and consider the future.