The US stocks fighting back against the headwinds

Utilities and telecoms are being negatively impacted by interest rate environment changes, but some sectors are showing resilient economic growth, says Evan Bauman, portfolio manager on the Legg Mason ClearBridge US Aggressive Growth fund.

One of the sectors which endured a very tough 2015 was energy, with the plummeting oil price threatening the existence of many producers. The uncertainty around how quickly production declines will linger for a while, but looking further ahead we believe a higher equilibrium price will be reached in the longer term. We also think we will see consolidation in the sector, which can bring a number of benefits to companies. Outside of energy, other attractive sectors are digital storage, media and cable and healthcare. Companies which sit well outside the mega-cap space look most attracti...