Which titles investors use to stabilize their portfolio

Cologne The stock exchange is considered to be a reflection of the economy: most shares are based on the course of the economy. These are the cyclical, economically sensitive stocks.

Countercyclical stocks, on the other hand, tend to underperform when the economy is on the up. But they perform better than average in difficult economic times or even a recession. With such titles, investors can stabilize their portfolio even in weak market phases.

Countercyclical stocks could become more important, especially in 2023. Luca Paolini, Pictet Asset Management’s chief strategist, expects global growth to slow to 1.7 percent – “although most developed countries could stagnate and Europe could even experience a recession,” he adds.

The European Central Bank (ECB) has recently significantly reduced its short-term growth forecasts for the euro area. The ECB expects the economy to grow by 0.5 percent in 2023. So far, she had assumed 0.9 percent.