John Rogers, co-chief executive officer of Chicago-based Ariel Investment LLC, is encouraging investors to consider Madison Square Garden Entertainment Corp., a company synonymous with New York City. Speaking at this year’s Executives’ Club of Chicago’s annual outlook event, Rogers, known for discussing Chicago stocks, highlighted MSG Entertainment as a notable exception.
Despite its New York ties, MSG Entertainment is among Ariel’s top holdings, as revealed by data compiled by Bloomberg. Rogers suggested that the stock could be a valuable long-term addition to a portfolio, emphasizing the company’s substantial cash generation and the ongoing renovation of New York’s Penn Station, situated beneath Madison Square Garden.
Having accurately predicted the avoidance of a recession in 2023 during his previous talk to the executives’ club, Rogers shared his outlook for 2024. He expressed confidence in low odds for a recession this year, anticipated inflation around 2.5%, and predicted three interest rate cuts by the Federal Reserve starting in the summer. Rogers, however, expressed concerns about geopolitical tensions and the societal divide in the U.S. He identified potential opportunities in neglected small-cap stocks while acknowledging the surge in large-cap stocks.
Amid the uncertainties at the beginning of 2024, including debates on interest rates and ongoing conflicts in Ukraine and the Middle East, attention is focused on the Federal Reserve’s potential rate reductions and the market response. Recent indications suggest growing momentum for rate cuts this year after a series of aggressive rate increases since March 2022.
The World Bank’s assessment on Tuesday emphasized slower global economic growth compared to previous decades. Factors such as high interest rates, sluggish trade, and geopolitical tensions are identified as impediments to the rebound from the pandemic, with developing countries expected to be most affected.
