Germany’s economy is on the verge of a recession and already has negative interest rates
US economy continues to weaken especially in the capital goods / industrial sector
US year over year corporate profit growth slowing to 1-2%.
Global business confidence continues to erode from trade wars, Brexit fears, inverted yield curve, negative rates in Germany and Japan
A cautious investment stance is critical in this environment. Maintain high cash levels, reduce equity exposure and tilt equity exposure to more defensive groups like utilities, consumer staples, telcos and Reits.