Markets are in a tug-of-war as we enter the second half of 2018: Strong global growth and corporate earnings on the one side. Rising economic risks such as trade disputes on the other. We still see the former winning out, with robust U.S. growth helping to sustain the global economic expansion and boost earnings. Yet the range of possibilities for the economic outlook has widened, as we write in our Global Investment Outlook Midyear 2018 . On the upside: U.S. stimulus (think corporate tax rates and fiscal spending) could boost corporate investment and lift potential growth. On the downside: rising trade tensions could dent economic growth. Against this backdrop of greater uncertainty, we think it is prudent to dial down risk exposure and build greater resilience into portfolios . How do we advocate adding resilience? Here are five ideas.
1. Prefer U.S. equities.prefer U.S. equities
2. Consider quality exposures in equities.dividend stocks Midyear 2018 outlook
3. Favor U.S. short duration.IG
4. Go up-in-quality in credit.investment grade ( IG EMD
5. Don't forget about sustainable investing.ESG what sustainable investing could bring to a portfolio full midyear outlook Richard Turnill is BlackRock's global chief investment strategist. He is a regular contributor to The Blog .
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