Market broadening theme will become relevant again, says Neuberger Berman's Joe Amato

• Market has seen a decent bounce, but 40-50% of stocks are still 20% below their one-year highs, indicating underlying carnage.
• Optimistic about nominal and real growth globally and in the US, expecting a return to discussions about underlying positive fundamentals.
• The 'broadening out' theme (non-US equities, value over growth, small/mid-cap) is expected to become relevant again in a higher nominal growth environment.
• Oil prices and the duration of geopolitical conflicts are key factors, with non-US economies being more vulnerable to sustained high oil prices.
• Institutional investors are advised to maintain strategic allocations and use market pullbacks as opportunities to reinforce those allocations.

Joe Amato of Neuberger Berman discusses current market uncertainty, suggesting that while the overall indices have bounced, many individual stocks are still significantly down. He believes underlying fundamentals for nominal and real growth remain positive, and a 'broadening out' theme, favoring non-US equities and cyclical sectors, will become relevant again. He advises institutional clients to stick to strategic allocations and use pullbacks as opportunities.