Challenging Environment Calls for Defensive Approach in Equities

Portfolio Manager Justin Tugman says slowing growth and rising multiples are making for a difficult investment environment. In his opinion, equities remain attractive, but investors should consider a defensive approach.

Key Takeaways

  • The current market environment is one of the most challenging of the past decade, as stock valuations have continued to rise while economic growth and interest rates decline.
  • Compounding the issue is uncertainty around whether a recession is imminent or economic growth is simply slowing.
  • Still, we think equities remain attractive, but that a defensive approach is warranted.