Much of the market’s attention in 2024 has been dedicated to mega-cap tech companies. However, new things could be on the horizon for 2025.
With the Federal Reserve in the middle of what will likely be a series of interest rate cuts, new opportunities could emerge within the market. With consumers as well as companies positioned to benefit from rate cuts, other sectors could begin to shine.
The Loomis Sayles team discusses this in a recent Investment Outlook. In the report, Global Macro Strategist Craig Burelle highlights how economic fundamentals are driving a broadening of earnings growth across sectors.
“Earnings growth should accelerate within industrials, healthcare, materials, consumer staples, and energy in 2025, in our view, while remaining firm for information technology and communication services,” he added.
The Loomis Sayles Method
Savvy investors would do well to keep this knowledge in mind and build an equity portfolio for long-term growth. The Natixis Loomis Sayles Focused Growth ETF (LSGR ) can be especially well-positioned to do the job.
There are more than a few reasons why investors should consider LSGR heading into the new year. For one, the fund’s portfolio focuses on quality companies with robust competitive advantages and long-term growth potential. As such, LSGR’s ethos keeps the company in a good spot to capitalize on wider growth sectors.
LSGR’s portfolio is well-positioned to capitalize on broadening equity returns. The fund holds significant exposure to the technology sector, which is still in a good spot for gains next year. This tech allocation can serve as a ballast for other sectors that could see earnings growth, such as health technology and retail trade.
Lastly, and perhaps most importantly, LSGR is an actively managed fund. Should sector returns truly widen in the equity market, traders can rely on active managers to best pilot a fund to capitalize on change.
Even in the near term, the fund is presenting a good investment case. As of Oct. 22, 2024, its NAV has jumped 3.14% over the last month.
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