Investor Presentaiton
Portfolio Outlook and Positioning
MFS®
The risk of recession appears to be declining, and rising oil and copper prices may be an indication the economy is strengthening. Contrary
signals, including rising bankruptcies, which are on par with 2020 and the global financial crisis, but this likely has more to do with companies
wrestling with higher financing costs rather than economic weakness. As discussed earlier, momentum led the market in the first quarter. For a
more broad-based rally to take hold, investors will likely need to see further signs that the economy is improving, inflation is slowing and interest
rates are coming down. We did see signs of the market broadening in March, as value outperformed growth, and value-oriented, more cyclical
sectors such as energy, materials and financials outperformed with technology lagging. In addition, EPS growth is poised to substantially broaden
in the coming year, with Magnificent 7 growth decelerating while the rest of the market accelerates, which should lead to less market
concentration. We take an active, bottom-up-oriented approach to equity investing focused on high-quality franchises with durable and
consistent growth, combined with a valuation discipline that we believe will serve the strategy well moving forward.
54486.6
The commentary included in this report was based on a representative fully discretionary portfolio for this product style; as such the commentary may include securities not held
in your portfolio due to account, fund, or other limits.
FOR DEALER AND INSTITUTIONAL USE ONLY. - Massachusetts Investors Trust
PRPEQ-MIT-31-Mar-24
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