Opportunities in the Market Rotation

Show from 07/26/24 Host Jeremy Schwartz and Professor Siegel delve into the latest economic data, discussing the current GDP growth rate of 2%, stable jobless claims, and the PCE consumption figures. They note the favorable trends in commodity prices and speculate on the Fed’s potential rate cuts in September, with Professor Siegel suggesting a likely 25 basis points cut. The discussion also covers the political landscape, including the narrowing odds for Trump and the implications for tax policies under a potential Harris administration. (10:51) Jeremy Schwartz continues with Stephen Lee from Logan Capital, focusing on large-cap growth, the real rotation in the market, and how technology is impacting various sectors. Stephen Lee highlights the impact of AI and digital tools on business operations. They also discuss the importance of earnings leadership, where companies demonstrate their ability to grow despite economic challenges. Lee emphasizes the role of good management and technological adoption in driving growth. They touch on the differences between passive and active investment strategies, noting the advantages of identifying growth opportunities earlier than indices. The conversation concludes with insights into sectors benefiting from structural themes like housing, and how companies are adapting to changing market conditions and consumer behaviors. Guest: Stephen is a founding principal of Logan Capital and the firm’s treasurer. As a manager of growth portfolios, Stephen plays an active role in the security selection for the firm’s large cap growth and mid-to-large cap growth portfolios. He is also a member of the Fixed Income team. Before founding Logan Capital with his partners in 1993, Stephen was employed at Mercer Capital Management and Merrill Lynch. He currently serves his community as a member of several investment committees and foundation boards. He is a graduate of Lehigh University with a BS in accounting. Learn more about Stephen at: https://logancapital.com/team/#stephen-s-lee Follow Stephen on LinkedIn: linkedin.com/in/stephen-lee-b3a53a5