289. “It’s not the cycle you’re in that matters, it’s the starting point"

Bob Kaynor, manager of the Schroder US Mid Cap fund, digs deeper into the US economy. We touch on the ‘Magnificent Seven’ and how they shed light on a wider issue: can the level of concentration in the S&P 500 continue? Or is the AI bubble set to bust? We navigate through the unique challenges posed by student debt, higher interest rates, the US consumer, the employment cycle and the potential impact of upcoming global elections on the market. Bob rounds out the episode by giving his insights into the small- and mid-cap area of the market offering a glimpse into the fund’s bottom-up approach.What’s covered in this episode: The dominance of the ‘Magnificent Seven’ stocksCan market concentration in the US continue? The sustainability of high valuations in tech and AIWill the AI bubble burst?Will student debt repayments impact the US consumer?The ability of the US consumer to drive economic growth long termThe impact of the employment cycle and labour hoardingThe influence of global elections on the economy and stock marketWhy insurance companies look appealing todayThe prospects for small- and mid-cap investments in 2024More about the fund:Managed by Bob Kaynor in New York, this fund focuses on small- and mid-cap US companies, aiming to outperform the Russell 2500 Total Return Lagged index over three to five years. The fund's success is attributed to meticulous stock-level analysis, emphasising stock selection over sector allocation. Bob's hands-on approach, supported by a seasoned analyst team, distinguishes the fund.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.