Conviction: The fifth element in core equity investing

Matthew Lilling at ClearBridge Investments suggests AI-driven scarcity is allowing perceived lower-quality companies to post the revenue growth, margin expansion and rising returns investors associate with quality businesses.

For two decades, the United States consumed and China built. That division of labor has not merely evolved — it has inverted. The investment map drawn for the early 2000s no longer describes the next decade.

Franklin Templeton Institute sees attractive opportunities in core bond-plus strategies, supported by elevated yields and resilient credit fundamentals.