Analysts at JP Morgan are getting twitchy over equity markets for the remainder of the year and so are going full-on defensive with their stock choices.
Consumer staples with pricing power have proved their worth over the past six months and are likely to do so again, says the US bank, which highlights two-thirds of firms in the sector beat forecast sales and margins in the first half of this year.
Sales should hold up in the second half adds the broker, which thinks the sector will outperform again due to earnings momentum and a much lower rating relative to the market than six months ago.
Stick with quality, it adds, so that means for London-listed options Diageo and Reckitt and elsewhere Nestle, Danone (OTCQX:DANOY) and Kerry.