Growth slowing but precipitous drop unlikely

09/09/2019


Although the current economic expansion is ageing (bringing us nearer to a recession) leading indicators do not indicate a sharp contraction. What could that mean for equity investors? Director of Research Carmel Wellso explains.

Key takeaways
  • So far, leading indicators suggest the global economy is slowing but not at risk of a precipitous drop (barring a sharp deterioration in trade wars or other exogenous shock).
  • In fact, although earnings expectations have eased, major stock indices are still expected to average at least single-digit growth rates in 2019.
  • As such, investors may want to consider reducing risk exposure and take into account companies that tend to deliver consistent earnings.

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