But Adam Hetts said that investors who aren't also playing offense might miss out on big gains.As concerns about a recession and uncertainty around thehave heated up in recent months, markets have grown fraught with fear. Investors have responded to these near-term cyclical headwinds by pivoting out of riskier assets and into more defensive holdings instead.
According to Hetts, investors who don't have an appropriate allocation to offensive assets risk not being exposed to the market's upside when it rebounds. "It's darkest before dawn — that stage typically happens three to four months into a recession. As Warren Buffet said, be greedy when others are fearful," Hetts added.In the case of a lasting bear market, Hetts expects a drop in earnings growth. That's why, to play defense in equities, he recommends investors look for high-quality companies with stable earnings.
Finally, Hetts said that a defining trait of the current market environment has been the high interest rate volatility. Therefore, investors should be careful to select for companies with high-quality balance sheets and lower levels of debt, since leverage only becomes more expensive and volatile as interest rates move.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WME signs business podcast host Ed Mylett as agency grows audio rosterWME signs author and speaker Ed Mylett, whose top business podcast adds to the agency's growing audio roster alongside clients like Malcolm Gladwell and Jay Shetty
Source: BusinessInsider - 🏆 729. / 51 Read more »