With the US presidential election approaching and uncertainty surrounding the Federal Reserve’s rate-cutting timeline through 2024, investors are seeking guidance on market strategy. Brandywine Global portfolio manager John McClain joins Wealth! to share his investment outlook.
McClain expresses optimism about current market (^DJI, ^IXIC, ^GSPC) conditions, noting that third quarter earnings are “off to a good start.” He highlights several positive indicators, including big banks’ outperformance, strong net interest margins, and healthy loan demand, concluding that “the economy is positioned well going forward.”
While acknowledging that the election will likely trigger market volatility, McClain advocates for an opportunistic approach, advising investors to “buy any dip at this point.” He believes this strategy will serve investors “well” during this period, predicting that post-election clarity will benefit markets as they “like what it sees on a go-forward basis.”
“We believe that buying high-quality businesses makes a lot of sense at this point in time,” McClain emphasizes, specifically mentioning ASML Holding (ASML) as an example of a quality investment opportunity. He adds: “We also think that if you see a meaningful pullback in the S&P here with the election angst, you’re supposed to take advantage of that because we do still see reasonable earnings growth going into 2025.”
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