In the latest newsletter from the Fundamental Growth & Core Equity team, Chief Investment Officer Mike Solecki considers the shifting macro narratives and market swings that were a feature of the past year. While 2023 may not have unfolded in the manner that many had anticipated, equity markets still delivered a strong set of returns. Part of the narrative behind that gain includes the extraordinary gains of the so-called Magnificent Seven group of stocks, although as Mike points out the same group was only modestly positive across the two-year period of 2022-2023, reflecting the market swings through this time. Looking forward, the team continues to focus on quality companies with strong market positions, deep competitive moats, and healthy balance sheets to deliver over the long term.
We also include an article that that is very relevant in the context of where the FGC team envisions long-term growth opportunities to emerge. This article takes a close look at the importance — and the mechanics — of carbon capture in achieving net zero targets by 2050.
Carbon Capture: Enabling Energy Transition The global economy is transitioning from dependence on fossil fuels to clean energy. Governments and companies are taking concrete steps to avoid the worst climate impacts by targeting net zero emissions by 2050. We believe companies with credible transition plans will increasingly attain a competitive advantage. While some industries are relatively easy to decarbonize, others require technological breakthroughs to bring them to their net zero target.