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.
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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Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.