ClearBridge’s mid-year outlook signals a strengthening case for investing beyond US equities, driven by improving earnings momentum, macroeconomic factors, and technology-led growth in emerging markets.
ClearBridge Investments says the argument for looking beyond US equities is strengthening, with the firm’s mid-year outlook pointing to a mix of improving earnings, still-favourable valuations and a wider set of macro drivers that could support a more lasting period of international market leadership.
Jeff Schulze, ClearBridge’s head of market and economic strategy, said the opportunity in overseas shares is no longer just a tactical trade driven by cheapness. He argued that earnings momentum, particularly in emerging markets, is beginning to improve in a way that could underpin a longer run of relative strength. The latest figures cited by ClearBridge show earnings revisions for the MSCI Emerging Markets Index have risen faster than those for the US, Europe and Japan, a shift the firm sees as important because upward revisions often accompany sustained outperformance.
Schulze also pointed to the role of artificial intelligence in supporting demand across emerging-market supply chains. In ClearBridge’s view, the beneficiaries are not limited to the best-known US technology groups, but extend to countries and companies supplying the infrastructure, components and energy systems needed for the build-out.
Valuations remain another pillar of the case. Schulze said the gap between US and non-US equities is still wide by historical standards, even after recent gains abroad. He added that a softer dollar would likely help overseas assets by easing financial conditions and improving capital flows into those markets.
The firm also sees room for further support if US monetary policy becomes more accommodative and long-term rates ease. Schulze said that a durable easing in Middle East tensions could add to that backdrop, creating a more constructive environment for international shares.
ClearBridge believes the cycle may prove more durable than previous episodes of non-US strength because of the make-up of overseas markets. International indices tend to have more exposure to cyclical sectors such as financials, industrials, energy and materials, which could benefit if inflation proves sticky, nominal growth holds up or governments outside the US continue to lean on fiscal support.
The firm also highlighted possible upside from a commodity-led investment cycle tied to data-centre construction, power-grid upgrades and renewable energy spending. It said such trends could favour countries with heavy metals and resource exposure. A recovery in Chinese consumer demand would also have broader implications, ClearBridge said, because of the knock-on effects for regional equity markets and global supply chains.
That view fits with a broader theme in the firm’s recent commentary: market leadership is widening beyond a narrow group of large US companies. In earlier notes, ClearBridge observed that rallies have been broadening as bond yields eased and investors grew more confident that the Federal Reserve had finished hiking rates. Its more recent commentary on mid-cap stocks also described a more selective but improving environment, with stronger fundamentals and greater dispersion creating opportunities for active managers.
ClearBridge said the democratisation of AI could further widen the benefits of technology-led growth beyond the US, improving productivity and lowering costs for companies elsewhere. Taken together, Schulze said these factors make the international case more compelling than a simple valuation play.
“The opportunity in international equities is no longer just about valuation support or mean reversion,” he said. “It is increasingly supported by improving earnings, favourable macro conditions and multiple pathways to broader market leadership.”
- https://financialnewswire.com.au/investment/non-us-equities-the-durable-option-clearbridge/ – Please view link – unable to able to access data
- https://www.clearbridge.com/perspectives/commentaries/2023/4q/appreciation – In the fourth quarter of 2023, ClearBridge Investments observed a significant market rebound, with the S&P 500 Index rising 14.1% from November 1 to year-end. This surge was driven by expectations that the Federal Reserve had completed its interest rate hikes and might initiate cuts in the first half of 2024. The rally was broad-based, including small-cap stocks, indicating a healthy market environment. Despite this optimism, ClearBridge advises that total return expectations should align with long-term trends rather than the larger fluctuations seen in the post-COVID era.
- https://www.clearbridge.com/perspectives/commentaries/2023/4q/sustainability-leaders – In the fourth quarter of 2023, U.S. equities ended the year near all-time highs, bolstered by declining bond yields and optimism about the economy’s soft landing. Clean energy stocks experienced a boost as Treasury yields fell and expectations grew for interest rate cuts in 2024. ClearBridge highlighted its commitment to advancing ESG engagement through its ‘Engage for Impact’ initiative, launched in 2022, aiming to better structure, measure, and communicate the progress and outcomes of key engagements.
- https://www.clearbridge.com/perspectives/commentaries/2025/3q/mid-cap-growth – In the third quarter of 2025, mid-cap growth equities posted modest gains, navigating a complex environment shaped by monetary policy shifts, stabilizing earnings, and improving investor sentiment. The ClearBridge Mid Cap Growth Strategy outperformed its benchmark, with strong contributions from the IT and consumer staples sectors, which offset detractors in the consumer discretionary sector. The quarter underscored that leadership within mid-growth stocks is selective, and while near-term volatility is likely, the strategy remains well-positioned due to its fundamental, bottom-up approach.
- https://www.clearbridge.com/perspectives/commentaries/2025/4q/mid-cap – In the fourth quarter of 2025, mid-cap equities experienced a challenging environment marked by heightened dispersion and uneven leadership. The ClearBridge Mid Cap Strategy underperformed its benchmark, as broad-based market headwinds and uneven earnings reactions weighed on results. Strength in the consumer discretionary sector partially offset pressure across other sectors. ClearBridge believes that improving clarity around policy, business investment, and economic conditions is laying the groundwork for a more favorable backdrop for active stock selection.
- https://www.clearbridge.com/perspectives/commentaries/2025/1q/mid-cap – In the first quarter of 2026, mid-cap equities posted positive returns, outperforming both large and small-cap peers amid a highly volatile quarter. The ClearBridge Mid Cap Strategy underperformed its benchmark, with weakness in information technology, health care, and consumer discretionary sectors more than offsetting strength in industrials and consumer staples. ClearBridge remained active in the consumer discretionary sector, focusing on businesses capable of performing across various scenarios while staying flexible as the environment evolves.
- https://www.clearbridge.com/perspectives/commentaries/2025/1q/mid-cap-growth – In the first quarter of 2026, mid-cap growth equities declined but outperformed larger-cap peers as market leadership continued to broaden. The ClearBridge Mid Cap Growth Strategy outperformed its Russell Midcap Growth benchmark, supported by its more cyclical positioning and strength across a wide range of industrials. The approach remains grounded in selectivity and discipline, focusing on owning businesses that can perform across a range of scenarios while remaining flexible as the environment evolves.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 29 June 2026, which is recent. However, the content largely mirrors ClearBridge’s mid-year outlook from June 8, 2026, with minimal new information. This suggests the article may be a repurposed summary, potentially reducing its freshness score.
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to Jeff Schulze, Head of Market and Economic Strategy at ClearBridge. These quotes are consistent with those found in ClearBridge’s official publications. However, the absence of direct links to the original sources raises concerns about the verification of these quotes.
Source reliability
Score:
6
Notes:
The article originates from Financial Newswire, a niche publication. While it cites ClearBridge’s official statements, the lack of independent verification and the potential for summarisation or aggregation from other sources diminishes its reliability.
Plausibility check
Score:
8
Notes:
The claims about improving earnings expectations and attractive valuations for non-US equities align with ClearBridge’s recent outlook. However, the article’s reliance on a single source without additional corroboration raises questions about the robustness of these claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information consistent with ClearBridge’s mid-year outlook but lacks independent verification and relies heavily on a single source. The potential for summarisation or aggregation from other sources further diminishes its reliability. Given these concerns, the content does not meet the necessary standards for publication under our editorial indemnity.