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Allspring Global Investments senior portfolio manager Bryant VanCronkhite joins Market Domination hosts Julie Hyman and Josh Lipton to discuss current market (^DJI, ^IXIC, ^GSPC) uncertainty and optimal investment strategies for this challenging environment.
"The market's a bit worried about a growth scare here," VanCronkhite explains. "And they're worried about it in the context of the Fed not being there to support them if it does happen."
He emphasizes that both inflation and inflation expectations are trending higher, which "triggers a change in consumer behavior — all of that could lead to a growth scare."
Addressing the recent investor migration toward defensive sectors like utilities and consumer staples, VanCronkhite cautions that "this too could come to an end soon, so I think the market's being a little bit more careful about where to put capital today."
In this uncertain climate, VanCronkhite recommends focusing on companies with "financial freedom," which he defines as businesses that have the capability to "do what they need to do through the cycle to drive and generate their own growth."
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He highlights Canadian Pacific (CP) and Arch Capital (ACGL) as examples of companies demonstrating these characteristics.
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This post was written by Angel Smith