Wittman also warned against the planned fiscal expansion in the United States, which could raise the government’s deficit, also highlighting the election of several populist leaders across the world. With this global backdrop, some investors are finding it increasingly difficult to invest in the stock market.
“Most managers are worried because there’s nowhere to hide,” Peter Toogood, the chief investment officer at The Embark Group, told CNBC Monday.
“It’s not (the year 2000), it’s not (2008), you can still go and buy the defensives in a way,” Toogood said in reference to a recession at the start of 2000 and the global financial crisis of 2008. But he warned that it is becoming increasingly difficult to invest in those stocks that are not sensitive to global growth fluctuations, the so-called defensive stocks.
“It does look like global growth has peaked, it does look like equity market behavior is telling you that things aren’t looking so special, the cyclicals (stocks sensitive to global growth) are selling off,” he warned.
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