With Uncertainty Ahead, is it Time for Low Vol Strategies?
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Strategy Espresso
While global growth is expected to slow in 2019, we feel that US equities are still the place to be due to relatively strong earnings and fairly robust economic data. However, investors should be cognisant of the volatility associated with late economic cycles.
From both a macro and fundamental standpoint, we see reasons why US equities could continue to do well, although there are downside risks to monitor. Given a range of uncertainties — such as the Fed’s rate hike plans, US-China trade disputes, and where in the economic cycle we are — there could be heightened volatility ahead. In light of this backdrop, our strategists favour defensive
