The S&P 500 just hit a record high to declare its bull market status, but according to a money manager who helps oversee more than $1 trillion, there are a few names investors can focus on in the next phase of the cycle. Saira Malik, portfolio manager and chief investment officer at Nuveen, which has $1.1 trillion in total assets under management, said she remains cautious despite recent market strength. For Malik, there is a long list of risks to worry about in 2024, including the Federal Reserve’s precise path to rate cuts, the presidential election as well as potential weakness in US consumer spending. “The Fed will likely keep its finger on the pause button until the second half of the year,” she said. “We are concerned about American consumers, who are burdened with record levels of credit card debt with high interest rates.” .SPX 1Y Mountain S&P 500 The S&P 500, which hit an unprecedented intraday peak on Friday, is rising again at the end of 2023, posting a 24% gain for the year. Investors were relieved that the economy avoided the recession that many expected early in the year, inflation fell to levels that allowed the Fed to stop raising interest rates, and artificial intelligence was believed to be stimulating a productivity and profits boom. However, a stunning rally in late 2023 that continued into the new year has Malik wary of a potential pullback looming. It now recommends focusing less on companies with less cyclical businesses in favor of more defensive and less economically sensitive areas. Here are some picks I shared with CNBC Pro. Dividend Growers: The investor prefers companies that have the ability to grow their dividends, because they tend to have abundant free cash flow and sustainable growth. One name it highlighted was chemicals producer Linde, which said it was showing strong management execution amid continued demand for its industrial gases. “They are also investing in new areas such as clean hydrogen,” Malik said. “Linde is focused on shareholder returns through a combination of buybacks and dividends.” She added that Lindy’s dividends increased by 9% in 2023 and are expected to increase every year. The stock hasn’t changed much in 2024 after jumping 26% last year. Another dividend stock she likes is communications equipment maker Motorola Solutions, which Malik said is benefiting from higher government spending and an increased focus on public safety. (Separately, Deutsche Bank initiated research coverage of Motorola on Friday with a buy and a $350 price target.) For her part, Malik also likes Motorola’s stable and growing earnings and cash flows. Shares rose about 5% after a 21% increase in 2023. Infrastructure stocks Malik believes that global infrastructure companies benefit from inelastic demand for the essential services they provide, and are therefore insulated from most recession risks. The name in the industry she particularly likes is utility provider CMS Energy. The Jackson, Michigan-based company, which has seven million customers, is set to enjoy a tailwind from that state’s legislatively mandated shift to renewables and clean energy, Malik said. The stock returned 3.5% and underperformed last year, falling 8% and falling another 3% so far in 2024. “Both earnings growth and global infrastructure stocks have beaten the markets relatively well,” Malik said. Throughout history.”