The S & P 500 just notched a file substantial to declare its bull marketplace position, but according to one funds supervisor who assists oversee more than $1 trillion, there are a couple names traders could emphasis on for the next leg of the cycle. Saira Malik, portfolio manager and chief investment officer at Nuveen with $1.1 trillion in whole property underneath administration, claimed she stays cautious even with the market’s modern strength. For Malik, there is a laundry list of challenges to worry about in 2024, including the Federal Reserve’s specific route to reduce desire premiums, the presidential election as nicely as possible weak point in U.S. customer paying. “The Fed is extra most likely to continue to keep its finger on the pause button until the next 50 % of the 12 months,” she mentioned. “We are anxious about U.S. people, who are burdened by document concentrations of credit card personal debt at elevated curiosity premiums.” .SPX 1Y mountain S & P 500 The S & P 500 , which hit an all-time intraday peak Friday, roared again at the stop of 2023, notching a 24% gain for the 12 months. Investors have been buoyed that the overall economy skirted a recession that quite a few experienced expected early in the year, inflation fell to concentrations that allowed the Fed to cease mountaineering curiosity rates and synthetic intelligence was assumed to be spurring a productivity and earnings growth. However, the unbelievable rally in late 2023 that has ongoing into the new yr has manufactured Malik wary of a opportunity drawdown looming on the horizon. She’s now recommending focusing much less on providers with much less cyclical firms in favor of much more defensive, significantly less economically sensitive parts. Here are some of the picks she shared with CNBC Pro. Dividend growers The investor favors firms with the means to increase their dividend payouts, as they are inclined to have sufficient absolutely free dollars stream and sustainable progress. A single title she highlighted is chemicals producer Linde , which she reported is exhibiting solid management execution amid ongoing demand from customers for its industrial gases. “They are also investing in new locations these as thoroughly clean hydrogen,” Malik stated. “Linde is targeted on shareholder returns by way of a blend of buybacks and dividends.” She added that Linde’s dividend greater 9% in 2023 and is expected to increase just about every calendar year. The inventory is minor altered in 2024 right after leaping 26% past 12 months. A further dividend-expanding inventory she likes is communications equipment maker Motorola Answers , which Malik mentioned is benefiting from larger authorities shelling out and an greater emphasis on public safety. Independently, Deutsche Financial institution started investigation protection of Motorola on Friday with a get score and $350 value concentrate on. For her component, Malik also likes Motorola’s secure and expanding earnings and cash flows. Shares have received about 5% following a 21% get in 2023. Infrastructure stocks Malik thinks international infrastructure companies benefit from inelastic need for the needed services they deliver, and are so insulated from most economic downturn challenges. The identify in the marketplace she specially likes is utility company CMS Energy . The Jackson, Michigan-based corporation with seven million buyers is set to delight in a tailwind from that state’s legislatively mandated change to renewables and thoroughly clean power, Malik claimed. The stock yields 3.5% and underperformed past calendar year, slipping 8% and is off an additional 3% so far in 2024. “The two dividend progress and global infrastructure stocks have historically weathered down marketplaces somewhat nicely,” Malik stated.