- Small-cap and emerging market stocks top the $1.2 trillion investment manager’s best equity ideas.
- Nuveen also favors value, cheap growth and ESG-first companies heading into second half of the year.
Peak growth is here.
Less than 18 months ago, COVID-19 represented one of the largest threats to the American economy in years.
Shutdowns forced small businesses dependent on diners, lodgers, and the like to close, while large corporations had to reckon with supply-chain complications and financial markets were thrown into a tizzy. All the while, the virus itself hung over the heads of C-suite executives, workers, and everyone in between.
Now, the picture looks starkly different for many parts of corporate America.
In fact, Chicago-based investment giant Nuveen says the US economy is nearing, if not already at, “peak growth” — begging the question of what investors should do next.
“The global pandemic has produced a unique economic pattern that renders traditional economic models obsolete. This is why we’ve spent the bulk of the recovery to this point noting that things are going ‘better than expected,'” Chief Investment Strategist Brian Nick wrote in a June 28 report from Nuveen’s Global Investment Committee. “Now that those expectations have caught up to reality, we expect market returns to be somewhat harder to come by.”
Investors have been some of the biggest beneficiaries of the COVID-19 recovery.