Insights

With a macro backdrop that includes policy uncertainties, elevated interest rates, persistent inflation, combined with slowing consumer spending and increased geopolitical tension, the team at Brookmont believes that focusing on quality companies with solid balance sheets and durable business models is the best way to minimize risk

A broadening market rally leaves room for thematic capital appreciation opportunities in various sectors such as defense.

Inflation showed signs of improvement, inching closer to the Fed's 2% target after a series of unexpectedly high Consumer Price Index (CPI) reports in Q1.

Adding "quality" along with “value” and “growth” styles can cultivate greater downside protection, a less volatile portfolio, while still offering growth potential for long-term investors.

In 2023, the U.S. experienced a phase of 'painless disinflation,' where inflation pressures decreased while the economy remained strong, boosting stock markets

The IT and communication sectors contributed more than 70% of the total S&P 500 returns in 2023.  Attractive secular growth drivers and quality companies should dominate in 2024

Despite 18 months of Fed tightening actions, the economy still remains remarkably resilient. While inflation is slowing, it has remained firmly above the Fed's 2% target.

The high-quality companies that we select to invest in are well capitalized with significant cash reserves and have easy access to credit, allowing them to invest organically in operations and take advantage during recessionary periods to capture additional market share.

The stock market is highly unpredictable, and trying to time the market by actively trading in an attempt to capture short-term gains can be a challenging and potentially costly strategy. 

The Brookmont Investment Team discusses the expected recession, labor tightness affecting fed policy, the reopening of China, and looking at the 2023 equity markets. 

The Federal Reserve continues there hawkish actions and narratives due to the labor market while value stocks present long-term investors with attractive valuations.

Dividend Growth Stocks display strong pricing power by having the ability to pass along costs to their customers and improve their margins through efficiency improvements brought on by technology.

Core inflation has peaked and the ongoing labor shortage might provide the necessary cushion for a soft landing

Inflation, Resurgence of COVID Lockdowns in China, and the changing of supply chains. 

The Brookmont research team discusses the secular and cyclical drivers for the bullish sentiment for the semiconductor industry

In this type of environment, it is important to still keep fundamentals in mind and focus on quality companies that produce growing cash flows, as these companies weather volatility in a more efficient manner than the overall market.

3rd Quarter 2021 firm commentary 

Inelasticity of Demand and Pricing Power Reduces Inflationary Pressures

The Great Lockdown resulted in a 31.4% decrease in annualized US real GDP in the second quarter. This, however, marked the bottom of the recessionary trough with real GDP rebounding 33.4% in the third quarter.

The work from home displacement caused by the Covid-19 pandemic has led to a peak in the Price to Earnings ratio of the Russell 1000 Growth...

During the 2nd Quarter of 2020, the market........

The COVID-19 lockdowns and zero commission brokerage accounts.....

When searching for “quality” long-term investments, some of the most important and easily quantified measurements are those....

The first four days of the week of March 23rd.....