Growth slowing but precipitous drop unlikely

02/09/2019

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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.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

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.

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