Our Chief Investment Officer, Scott Tremlett, shares his current view of macro-economic strategy that directly relates to his current investment strategies. Dinner and drinks included.
This event is full. Reach out to ccoyle@paramountassoc.com for more information.
U.S. Equities: OverweightDespite high valuations, I remain overweight U.S. stocks because:
The U.S. continues to have strong earnings momentum.
AI and automation investments are creating new growth opportunities.
The Fed’s measured approach to rate cuts supports a stable economic backdrop.
However, broad market exposure alone may not be enough. Investors should focus on quality companies with strong cash flows and earnings durability.
Developed International Equities: Selective ApproachEurope may outperform low expectations, but I remain cautious given structural weaknesses and geopolitical risks.
Emerging Markets: Favor India, Avoid China & BrazilEmerging markets offer pockets of opportunity, but economic instability in China and Brazil keeps me underweight in those regions.
Fixed Income: Underweight Government Bonds, Neutral on Corporate Bonds REITs & Commodities: Underweight Alternative Assets: OverweightAlternative investments—such as private equity, venture capital, private credit, and infrastructure —offer attractive opportunities in a market where traditional asset classes may deliver subpar returns.
While broad market exposure will be less effective in 2025, targeted investments in specific sectors and industries could provide outperformance.
Preferred Sectors (Overweight) Financial Services → Benefiting from higher rates and strong balance sheets.
Industrials → Supported by capital spending and reshoring of supply chains.
Technology → AI and infrastructure-related opportunities beyond chipmakers.
A More Nuanced View on UtilitiesThe utility sector has historically been viewed as defensive, offering stable dividends and inflation protection. While I still hold some exposure to traditional utility firms, I favor select companies that are partnering with AI firms to develop cooling systems for data centers.
These companies don’t fit the traditional utility mold—instead, they are positioned for above-average growth and should be viewed as growth stocks rather than defensive plays. This highlights the importance of taking a nuanced approach rather than painting entire sectors with a broad brush.
Investors can’t rely on broad market momentum as they have in recent years. Instead, success will come from strategic allocation and investment selection.
Overweight U.S. equities, but be selective within sectors.
Look beyond traditional sector labels—some utilities are actually growth plays.
Favor India over China & Brazil in emerging markets.
Stay cautious on bonds—government debt concerns could keep yields elevated.
Alternative assets provide diversification in an environment where traditional asset returns may be below average.
With strong earnings still driving market performance, I remain constructive on equities, but with a targeted, selective approach. This stock picker’s market will reward investors who look beyond the headlines and focus on the right factors driving growth.
