Batten down the hatches – it’s time to get defensive

The global economy is cooling; concerns about a full-blown US China trade war have hurt business confidence; and, in Europe, even the might of the German industrial machine has started to sputter. Conditions for the global equity market therefore don’t look particularly inspiring. According to Pictet Asset Management, expectations for corporate profits are heading lower – worldwide, there are now about five analyst earnings downgrades for every upgrade. “We consider that earnings will grow 5% this year globally – down sharply from the 15% seen in 2018 and below consensus,” says chief strategist, Luca Paolini. But that doesn’t mean it is…