Rob Hinchliffe, portfolio manager, head of global sector cluster research at US asset manager PineBridge Investments, shares his insights on key investment implications amid divergent global growth cycles.

As 2024 unfolds, Rob Hinchliffe at PineBridge Investments expects to see further de-stocking in some industries underlying wholesale trade. This could lead to lower-than-usual orders and sales, while the availability of inventory could also put pressure on prices and margins.

Higher interest rates are intensifying the divergence in global trends, Hinchliffe said in a note. Increased volatility presents more opportunities for managers to find high-quality yet underappreciated stocks that can also benefit from cycle-agnostic, longer-term secular themes, he added.

The need for companies to bring operations closer – both to home and to end consumers – has prompted a surge in US manufacturing spending since the pandemic. Beneficiaries of near-shoring include US-focused manufacturers as well as banks and consumer product companies in countries such as India and Mexico, which are benefiting from the supply chain shifts, he said.

Factory automation is another area for investors to watch. Opportunities from this trend are vast and already on many companies’ radar, given the difficulties and higher cost of hiring labor.

Momentum behind green energy and net-zero spending is also providing a boost to companies that help clients meet carbon-reduction goals, Hinchliffe continued.

Though we may be seeing the end of synchronized global growth, the resulting volatility creates an investment landscape ripe with alpha opportunities. The key is combining on-the-ground insights with strong fundamental analysis, to identify and isolate the mispricings that arise as companies evolve over time, he said.