Insights

ClearBridge Investments: With the economy still resilient, a gradual Federal Reserve hiking cycle could help broaden market leadership beyond the Magnificent Seven.

ClearBridge Investments: Higher yields appear less threatening when viewed against the resilient economic and earnings backdrop along with the green ClearBridge U.S. Recession Dashboard.

In this latest Talking Markets podcast, Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, tells us that the US economy is holding firm, with recession risk at just 20%, a strengthening labor market, and resilient consumer spending.

ClearBridge Investments: Broadening earnings strength and improving economic signals support a constructive outlook for equities, with earnings likely to remain the key driver of market leadership in the second half of the year.

In this latest Talking Markets podcast, Jeff Schulze of ClearBridge Investments explains to host John Przygocki why he maintains a constructive outlook for the US economy, putting the odds of recession in the next 12 months at just 20%.

ClearBridge Investments: Although markets often pause to digest after large gains, history suggests these episodes usually prove fleeting, meaning major indexes could move higher in the second half of 2026.

Jeff Schulze of ClearBridge Investments joins host John Przygocki to discuss US economic resilience amid Middle East energy disruptions. With 11 of 12 of his Recession Risk Dashboard indicators now green, Schulze highlights a strong labor market, durable consumer spending, and a CapEx cycle broadening that extends well beyond AI. He views the economy as mid-cycle, remains constructive on US equities, and sees compelling opportunity in emerging markets.

ClearBridge Investments suggests robust corporate earnings should continue to provide a solid market foundation, making investors inclined to continue to “buy the dips” should pullbacks emerge.

On this month’s Talking Markets podcast, Jeff Schulze of ClearBridge Investments joins host John Przygocki to assess the health of the US economy. He points to a resilient Q1 GDP reading, strong jobs data and earnings growth in estimating a 30% recession probability. He cites the Jevons paradox to explain why he doesn’t fear an AI “job apocalypse.” And he remains bullish on US equities despite Middle East uncertainty and inflation worries.

ClearBridge Investments suggests investors could use volatility as an opportunity to deploy capital, while modestly favoring the stronger earnings revisions and more reasonable valuations available in non-US equities.

On this month’s Talking Markets podcast, Jeff Schulze of ClearBridge Investments joins host John Przygocki to assess recession risks, energy price shocks, market volatility, and investor concerns from AI and labor trends to private credit and market concentration. Schulze also explains why the current “wall of worry” can actually create long-term equity opportunities.

Considering the constructive economic and market outlook, ClearBridge Investments believes the market will ultimately climb today’s wall of worry as investors’ leading fears are assuaged.

On this month’s Talking Markets podcast, our host, John Przygocki, sits down with ClearBridge Investments’ Jeff Schulze to assess the US economic outlook, evolving recession risks, and the market implications of escalating geopolitical tensions. The conversation spans inflation dynamics, the potential impact of oil price increases and Fed policy expectations, while also exploring AI disruption and providing an update on US equity markets.

ClearBridge Investments: History shows that investors should take advantage of the opportunity that appears to be emerging, with solid returns in the S&P 500 following historical “geopolitical dips”.

On this month’s Talking Markets podcast, Jeff Schulze of ClearBridge Investments reviews the latest Recession Risk Dashboard, including an update to Manufacturing PMI, New Orders. He also shares his thoughts on rotation in the US equity space, consumer strength, and why markets may see some volatility in 2026.

ClearBridge Investments believes a further continuation of late 2025’s broadening earnings delivery and accompanying market leadership rotation is likely given the underlying fundamental drivers.

On this month’s Talking Markets podcast, Jeff Schulze of ClearBridge Investments shares insights from the ClearBridge Recession Risk Dashboard, explores the outlook for US equities in 2026, and discusses how AI-driven capital expenditures compare to past innovation cycles. Get his perspective on economic trends and where opportunities may lie in the year ahead.

ClearBridge Investments: Despite bubble fears, there are several key differences between the late 1990s and today that we believe bode well for US equities in the year to come.

On this month’s Talking Markets podcast, our host John Przygocki and ClearBridge Investments’ Jeff Schulze examine the state of the US economy following the end of the government shutdown and amid ongoing debates about the impact of artificial intelligence on employment.

ClearBridge Investments: The ClearBridge Recession Risk Dashboard remains firmly in green expansionary territory; despite AI labor fears, supportive fiscal and monetary policy should power the US economy and corporate earnings in 2026.

ClearBridge Investments believes an industrial capex cycle for LNG infrastructure, semiconductors, manufacturing reshoring and grid modernization remains in its early stages.

ClearBridge Investments: The ongoing energy crisis is pushing global oil inventories, including many critical product inventories, toward all-time lows, and it may be time to position portfolios given the potential for supply shortages to emerge.

ClearBridge Investments: Energy-driven inflation and geopolitical risk increase the likelihood of higher-for-longer interest rates, which listed infrastructure has several mechanisms for passing through to earnings.

ClearBridge Investments believes infrastructure continues to offer built-in inflation defense, with regulatory frameworks and long-term contracts, supporting cash flows even if valuations face near-term rate pressure.

ClearBridge Investments: Rising energy-related inflation risks underscore the importance of UK energy security and the attractiveness of regulated infrastructure businesses with revenues linked to their regulated asset bases.

ClearBridge Investments believes the outlook for infrastructure in 2026 remains robust, driven by the accelerating demand for power and data fueled by AI.

ClearBridge Investments believes accelerating policy-driven investment and AI-driven data center growth are unlocking a multi-decade growth opportunity for listed utilities globally.

ClearBridge Investments: Despite recent strong performance for listed infrastructure versus equities, infrastructure valuations are still attractive on a risk adjusted basis, and could have room to run.

ClearBridge Investments: A new regime of tariffs will likely create the need for more infrastructure to support reshoring, while utilities' lack of exposure to international trade may bolster their defensiveness.

ClearBridge Investments: Demand for renewable energy will continue to be strong regardless of policy changes due to factors such as AI, as we think the market overlooks the changing electricity demand for renewable energy.

ClearBridge Investments believes the drivers of strong performance for midstream energy infrastructure in 2024 look to be just as relevant for 2025 and beyond.

ClearBridge Investments: While Donald Trump’s presidential victory has dominated global headlines, several key election results outside the United States could have significant impacts on international markets going forward in 2025.

ClearBridge Investments: Opportunities continue to be widespread across the infrastructure landscape, with strong fundamentals and the market still massively underestimating the growth in electricity demand driven by AI and data growth.

The potential of AI and data growth to drive significant infrastructure investment represents an emerging long-term thematic driver for the listed infrastructure asset class, according to ClearBridge Investments.

While the emergence of generative AI has sparked debate and uncertainty, ClearBridge Investments believes long-term investors should focus on the fundamental value proposition of software in driving business efficiency and innovation.

As we navigate an era of rapid technological advancement and increasing emphasis on sustainability, infrastructure emerges as a crucial investment opportunity. Find out more from ClearBridge Investments.

US market leadership is likely to broaden beyond the “Magnificent Seven” mega-cap stocks to include areas such as small caps and value stocks.

According to research from ClearBridge Investments, infrastructure has historically outperformed global equities over several time periods after the last rate hike.

ClearBridge Investments believes regulated utilities are entering into an elevated capex cycle over the coming decades, and regulators are broadening their allowed returns to help utilities finance that growth.

ClearBridge Investments: While public funding for renewables may face increasing policy risk, regulators will continue to provide attractive returns for regulated utilities supporting the energy transition.

ClearBridge Investments believes an industrial capex cycle for LNG infrastructure, semiconductors, manufacturing reshoring and grid modernization remains in its early stages.

ClearBridge Investments: High-quality dividend growers outside technology could offer attractive income, inflation offsets and downside risk mitigation as momentum in AI-related stocks shows signs of fatigue.

ClearBridge Investments: Drug development appears to be stabilizing, as improving biopharma funding and healthier demand create a more constructive backdrop for contract research organizations and life science tools companies.

Matthew Lilling at ClearBridge Investments suggests AI-driven scarcity is allowing perceived lower-quality companies to post the revenue growth, margin expansion and rising returns investors associate with quality businesses.

ClearBridge Investments global growth portfolio manager, Michael Testorf explores why now could be a pivotal moment for international equity investors.

Mega initial public offerings like SpaceX are bringing large private-market platform companies into public markets, raising important questions about valuation, liquidity, index inclusion and durable economics.

Paweł Wróblewski, Portfolio Manager at ClearBridge Investments, breaks down three powerful macro drivers reshaping the global investment landscape.

ClearBridge Investments: In addition to a greater range of chips supporting AI development, several factors could cause the current cycle to last longer than expected.

ClearBridge Investments believes the rise in global defense spending is creating opportunities in smaller, more specialized companies.

ClearBridge Investments: The ongoing energy crisis is pushing global oil inventories, including many critical product inventories, toward all-time lows, and it may be time to position portfolios given the potential for supply shortages to emerge.

ClearBridge Investments believes the most constructive outcome for energy equities is a quicker resolution to the Middle East conflict, as energy stocks typically perform better when prices stabilize at higher levels.

ClearBridge Investments believes high-quality upstream oil and LNG-linked equities offer disciplined exposure in a market where geopolitical risk now drives oil pricing.

ClearBridge Investments: As AI challenges digital business models, companies with physical assets, predictable cash flows, dividends and durable moats stand out as better positioned in a volatile, high‑valuation market.

US equities underperformed global markets in the first six months of 2025, but continue to trade at a premium to foreign markets. ClearBridge Investments outlines the case for global diversification.

ClearBridge Investments believes macro and technological shifts are driving a wider dispersion of outcomes, highlighting the need for active management.

ClearBridge Investments believes tariffs remain the key risk to corporate profits in the second half of the year and is less concerned about geopolitical events or the outlook for fiscal and monetary policy.

ClearBridge Investments believes significant state-supported investment in research and development, combined with established life science infrastructure, is bolstering the rapid growth of a Chinese biotechnology industry.

ClearBridge Investments believes dividend growers possess three attributes for an environment marked by inflation and policy risk: potential for downside protection, current income and growth.

ClearBridge Investments: Since the pandemic, the volatility of returns between growth and value has surged, which we believe is emblematic of a shift toward a new, value-led market regime.

ClearBridge Investments: While the new US administration’s policies are creating uncertainty in sustainability issues, particularly for tax-reliant wind and solar, many sustainable business criteria remain unchanged.

ClearBridge Investments: Emerging markets have significantly evolved in recent years and offer a more compelling risk/reward setup than in the past. From deeper local markets to world-leading companies, Emerging markets presents a stronger opportunity than geopolitical volatility suggests.

ClearBridge Investments outlines why the artificial intelligence boom has been led by Silicon Valley, but the next phase of value creation may be decided by physical bottlenecks.

ClearBridge Investments: India’s long‑term growth opportunity is underpinned by favorable demographics, rising domestic consumption and corporate reforms.

ClearBridge Investments believes emerging market equities have turned a corner, showing strong performance after years of lagging returns.

ClearBridge Investments believes emerging market equities have turned a corner, showing strong performance after years of lagging returns.

The US small- and mid-cap (SMID) growth market spans a broad spectrum—from early-stage innovators to established companies with recurring revenues, strong cash flows and durable competitive positions.

ClearBridge Investments believes the rise in global defense spending is creating opportunities in smaller, more specialized companies.

ClearBridge Investments: The AI revolution's biggest winners may not be the mega-cap developers everyone's watching. Smaller-cap specialists building the physical infrastructure behind AI could offer investors a different play—one that doesn't require betting on a single technology or architecture.