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Four unresolved issues related to the selloff stand to hold sway over stocks. More volatility is likely, and we favor a defensive tilt in equity portfolios, focusing on high-quality shares that can better withstand further economic deterioration.
The market pullback will take time to play out. Planning for an eventual shift to defense beats a “hope for the best” approach.
Pressure points in the economy and markets were triggered, sweeping up equities into a global selloff. We look at the market’s supporting factors and how investors should tilt equity exposure in portfolios.