Insights

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.

Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, discusses key spending, employment and other policy factors he is following as we look forward to 2026.

On this month’s Talking Markets podcast, Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, discusses the latest US economic outlook and provides insights on the Recession Risk Dashboard. Despite a federal government shutdown delaying official data releases, Jeff shares the alternative indicators he's using and why he thinks they point to continued economic resilience, strong corporate earnings, and a resilient consumer.

ClearBridge Investments believes the probability of a pickup in layoffs tipping the economy into a recession remains low. They remain confident that US economic growth will continue to moderate but stay on a healthy trajectory.

On this month’s Talking Markets podcast, Jeff Schulze of ClearBridge Investments discusses the potential for Fed interest-rate cuts and why he's leaning a bit hawkish. He also compares today's market dynamics to the late 1990s tech boom and shares his thoughts on the Magnificent Seven and global equity performance.

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 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: 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.