Mega-cap tech stocks: is it time to get defensive? | Ausbiz

Isaac Poole, Global Chief Investment Officer of Oreana Financial Services, says that China’s recovery has been slower than expected and further support is needed to come out of recession. He says the government is expected to provide credit relief and increase credit availability, particularly in the housing sector, to remove any impediments to growth. Despite diverging data, mainland Chinese arrivals into Hong Kong suggest that households in China are beginning to spend which may lead to domestic consumption becoming a driver of growth over the rest of the year. Regarding the US, Isaac believes that the recent jobs report was a mixed bag which could weigh in both doves and hawks of the Fed when considering monetary policy. He says that the US equity market is up, but is being carried by a small set of equities, leaving investors vulnerable to a downturn. Defensive moves may be wise.

(Source: Ausbiz)

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