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15 handpicked stocks

Defensive Plays For A Slowing Economy

U.S. job growth has slowed more than expected, signaling that economic uncertainty from trade tensions is impacting the labor market. This creates a potential investment opportunity in companies that are resilient to economic headwinds, such as those in defensive sectors and essential business services.

Author avatar

Han Tan | Market Analyst

Published on August 4

Your Basket's Financial Footprint

Market capitalisation breakdown for the basket 'Defensive Plays For A Slowing Economy'.

Key Takeaways for Investors:
  • Large-cap dominance tends to reduce volatility, implying lower risk and closer tracking to broad-market performance.
  • Suitable as a core holding for diversification, generally not appropriate as a speculative or high-growth sleeve.
  • Expect steady, long-term value rather than explosive short-term gains; growth is likely moderate and gradual.
Total Market Cap
  • GIS: $25.91B

  • GSK: $89.36B

  • CDP: $3.19B

  • Other

About This Group of Stocks

1

Our Expert Thinking

With U.S. job growth slowing significantly and falling short of expectations, we're seeing signs of economic uncertainty from trade tensions impacting the labour market. This creates an opportunity to focus on companies that remain resilient during economic headwinds, particularly those in defensive sectors and essential business services that maintain steady demand regardless of economic cycles.

2

What You Need to Know

This group focuses on businesses that are less sensitive to economic downturns, including consumer staples, essential services, and companies that help other firms improve operational efficiency. These stocks typically offer more stability during uncertain times, as they provide goods and services that people and businesses need regardless of economic conditions.

3

Why These Stocks

Each company in this group was handpicked by professional analysts for their defensive characteristics and ability to weather economic storms. As employers become more cautious with hiring and consumers potentially reduce spending, these firms are positioned to maintain sustained demand through their non-discretionary offerings and cost-saving solutions.

Why You'll Want to Watch These Stocks

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Economic Storm Shelters

These companies thrive when others struggle, offering essential goods and services that people need regardless of economic conditions. When uncertainty hits, defensive stocks often become the safe harbour investors seek.

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Steady Income Generators

Many of these firms offer attractive dividend yields, providing regular income even when markets are volatile. It's like getting paid to wait whilst the economy sorts itself out.

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Smart Money is Moving

Professional investors are already positioning for economic headwinds by rotating into defensive plays. These handpicked stocks represent the kind of quality companies that institutional money managers favour during uncertain times.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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