Stock Market Outlook: Soft Landing Hopes Too High, Play Defense in Stocks

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These 4 sectors are best positioned for the 2nd half of the year as investors' soft landing expectations get too high

Marko Kolanovic — and there are a handful of stock sectors that investors should look to for protection as the economic outlook becomes murkier. a soft landing materializing,

"With developed market central banks unlikely to ease near-term, ongoing quantitative tightening and our base case for macroeconomic slowdown, multiples look too high," Kolanovic said."We disagree with the market's expectation that soft landing is the most likely outcome." On a year-to-date basis, the total of high-yield and loan defaultsand is on track to be the market's third largest annual default total, according to the note.

In addition to cash and commodities, Kolanovic said investors should look to"pure defensive" stocks to outperform in the second half of the year.

 

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