Expert Insights

Want to stay invested in shares whilst also taking a defensive position? We spoke with Nikki Thomas, Portfolio Manager at Alphinity about adding a defensive bias without turning to cash. Firstly, Nikki says she would look to increase her allocation to defensive sectors with stable earnings such as utilities, property trusts and consumer staples. The next step is to find companies within those sectors that are less sensitive to broader economic conditions. Nikki uses the example of McDonald’s and says;


“It’s an incredibly defensive business model and we expect it will be able to deliver very good earnings growth as we go through the next 12-months even if we see the US consumer start to come under some pressure.”


In this short video she explains why analysts consistently underestimate the earnings power of this iconic brand.


 

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Primrose Gulliver

Interesting piece