---
title: ClearBridge Investments - Q1 2016 Commentary
description: ClearBridge Investments market commentary reviews the quarter where a lot was going on but nothing really happened.
image: http://www.wrapmanager.com/hubfs/MM_Logo_Images/ClearBridge_Investments.jpg
---

[![Assembly Wealth](https://www.letsassemble.com/hs-fs/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png?width=300&height=70&name=Assembly-Wealth-Logo-Orange-500px.png "Assembly Wealth")](https://www.letsassemble.com/)

The Money Manager People TM

[800-541-7774](tel:+18005417774)

[![RESEARCH MONEY MANAGERS](https://no-cache.hubspot.com/cta/default/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5)

[![Client Center](https://no-cache.hubspot.com/cta/default/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2)

[Home](https://www.letsassemble.com/)

WrapManager's Wealth Management Blog

When life changes, we can help you thoughtfully respond.

[< Back to read another post](https://www.letsassemble.com/wealth-management-blog)

# ClearBridge Investments - Q1 2016 Commentary

Posted by [ WrapManager's Investment Policy Committee](https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee)  
 April 5, 2016

- [Tweet](https://twitter.com/share)

![ClearBridge_Investments.jpg](http://www.wrapmanager.com/hubfs/MM_Logo_Images/ClearBridge_Investments.jpg "ClearBridge_Investments.jpg")

ClearBridge Investment's Hersh Cohen comments on the first quarter of 2016 regarding rallying oil prices and investor caution approaching the election. 

### "A Quarter Full of Sound and Fury, Signifying Nothing?

Paraphrasing Shakespeare’s Macbeth, one has to wonder about the meaning of the first quarter of 2016. The actions in the securities markets were indeed furious, but did they signify anything significant? [A brutal and swift 10% decline leading off the year](http://www.wrapmanager.com/wealth-management-blog/market-volatility-reassess-risk-tolerance) was followed by a vigorous rally that brought the popular averages back to where they began the year, essentially unchanged.

As we had hoped in our year-end commentary, dividends, particularly rising ones, regained popularity in the very low interest rate environment. It was a good quarter for most of our sectors. In late December, we wrote with a high degree of conviction that we expected difficult and erratic markets would continue until oil prices stabilized. We interpreted the collapse of oil and other commodity prices as not just a matter of oversupply, but as a reflection of a marked slowdown in global economies and therefore, lack of adequate demand. We also felt that the minor rise in interest rates by the Fed, along with their misplaced confidence in the strength of the economic recovery in the U.S., was scaring the markets.

By mid-February, things had changed. [Oil prices](http://www.wrapmanager.com/wealth-management-blog/what-falling-oil-prices-mean-for-your-portfolio-strategy) began to stabilize and then rally. Remarks from Fed officials became much more benign. As oil rose in price, so did hope that the recession in manufacturing was bottoming. Fears about banks and their energy industry loans subsided. Many stocks recovered from their lows.

Unfortunately, the sluggish economy we experienced in the years after the “Great Recession” of 2007-2009 has led to voter unease and an election year that is hard to watch. Candidates have taken discourse to the lowest possible levels. Being offered – besides name calling, smearing and juvenile comments – are simplistic solutions to very complex issues. Instead of ideas for growth, we get a blame game. The point is, we are uncertain about how financial markets will react as the [election approaches](http://www.wrapmanager.com/wealth-management-blog/republican-or-democrat-which-political-party-is-better-for-the-economy), but we lean toward continued caution.

Regarding oil, it seems intuitive that lower energy prices would stimulate consumer spending and benefit companies that use a lot of petrochemicals and oil. However, as we discussed in our last commentary, the drastic decline in oil prices has hurt manufacturers and producers more than it has helped other parts of the economy. Consumers continue to behave cautiously, as modest personal income growth appears to be going to pay down debt incurred during the worst of the recession, or to increase savings. At some point, one would hope that the effects of low oil prices would reverse. That would be a huge boost to the economy." Download below to read full report.

To learn more about ClearBridge Investments and other [Money Managers](http://www.wrapmanager.com/money-manager-research), give us a call at[1-800-541-7774](tel:+18005417774) or [contact us here](http://www.wrapmanager.com/contact) to speak with one of WrapManager's Wealth Managers.

![pdficon.gif](http://www.wrapmanager.com/hs-fs/hub/10700/file-2346359955-gif/blog-files/pdficon.gif "pdficon.gif") [Download ClearBridge Investment's full commentary here](http://www.wrapmanager.com/hubfs/MM_Commentary_PDFs/ClearBridge_View_1Q16.pdf)

![icon_report.gif](http://www.wrapmanager.com/hs-fs/hub/10700/file-2346359965-gif/blog-files/icon_report.gif "icon_report.gif") [Request free research reports from ClearBridge Investments](http://www.wrapmanager.com/money-manager-research/clearbridge_investments)

[Economic/Market Outlook](https://www.letsassemble.com/wealth-management-blog/topic/economicmarket-outlook) [ClearBridge Investments LLC](https://www.letsassemble.com/wealth-management-blog/topic/clearbridge-investments-llc)

[![get money manager picks](https://no-cache.hubspot.com/cta/default/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3)

### Subscribe to Updates

[Subscribe to RSS Feed](https://www.letsassemble.com/wealth-management-blog/rss.xml)

[![New Call-to-action](https://no-cache.hubspot.com/cta/default/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf)

### Most Recently Published

### Blog Authors

[![Gabriel Burczyk](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381761-jpg/Athors_Avatars/Gabe-avatar.jpg "Gabriel Burczyk")](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[**Gabriel Burczyk,**](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)  
[Founder & CEO](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[![Valerie De Vol](http://www.wrapmanager.com/hs-fs/hub/10700/file-2457588837-jpg/Athors_Avatars/Valerie-De-Vol-avatar.jpg "Valerie De Vol")](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[**Valerie De Vol, **IACCP®  
Chief Operating Officer](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[![Seton-avatar.jpg](http://www.wrapmanager.com/hs-fs/hub/10700/file-2344519198-jpg/Athors_Avatars/Seton-avatar.jpg "Seton-avatar.jpg")](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[**Seton McAndrews, **CFP®  
](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)[Vice President - Investments](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[![Doug Hutchinson](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381751-jpg/Athors_Avatars/Doug-avatar.jpg "Doug Hutchinson")](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

**[Doug Hutchinson,](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[CFA®  
](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)[Director of Research and Trading](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

![Katie - square.png](https://www.wrapmanager.com/hubfs/Katie%20-%20square.png "Katie - square.png")

[**Katie O'Connor  
**Director of Client Services](https://www.wrapmanager.com/wealth-management-advisors/katie-oconnor)

**Important Disclosure Concerning WrapManager Blogs**

Blogs found at this site have been created or supported by WrapManager. The information provided in a blog post prepared by WrapManager or an associated person of WrapManager is generally limited to financial and economic issues, but may include a discussion of general interest items. The views and opinions expressed on this blog are purely the blog authors, and not necessarily those of WrapManager, Inc. Certain blog posts include information pertaining to WrapManager’s investment advisory services and the products and services of unaffiliated money managers. Such information is provided for information purposes only. Accordingly, information provided in a blog should not be construed by any consumer and/or prospective client as a solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice. Any subsequent, direct communication by WrapManager with a prospective client shall be conducted by a representative of WrapManager. Moreover, no client or prospective client should assume content contained on the website serves as a substitute for personalized advice from WrapManager. Different types of investments involve varying degrees of risk, and there can be no assurance that any investment, portfolio or money manager referred to within the blog will be suitable for your individual situation and risk tolerance or will be profitable. WrapManager recommends that you retain a financial professional to provide you with specific guidance regarding your financial situation before investing. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.

Although the information included in the WrapManager, Inc. website and blog has been obtained from sources WrapManager believes to be reliable, we do not guarantee its accuracy and information may be subject to change without notice. This website should not be regarded as a complete analysis of the subjects discussed. Information on this site should not be relied upon as a substitute for legal, tax or accounting advice by a professional in your local jurisdiction.

Comments made by third parties are subject to moderation by WrapManager and may not appear on this blog until they have been deemed appropriate for posting. Also, due to the volume of comments received, not all comments will be posted.

WrapManager does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party website linked to WrapManager's web site or incorporated within a blog post. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

 

 

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "WrapManager's Investment Policy Committee",
    "url" : "https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee"
  },
  "datePublished" : "2016-04-05T16:37:00.000Z",
  "headline" : "ClearBridge Investments - Q1 2016 Commentary",
  "image" : [ "http://www.wrapmanager.com/hubfs/MM_Logo_Images/ClearBridge_Investments.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.letsassemble.com/wealth-management-blog/clearbridge-investments-q1-2016-commentary",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://www.letsassemble.com/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png"
    },
    "name" : "Assembly"
  }
}
```