Allianz's Petersen: Now is not the time to take risk off the table

More thought and selectivity required from investors

Mounting evidence suggests global growth is past its peak and we are now heading into the last phase of what has been a long period of economic expansion.

We do not think the global business cycle is finished yet, but as it matures, the world economy faces slower near-term growth. Not surprisingly, corporates' earnings estimates for 2019 have been revised down to more modest levels both in the US and in Europe. At the same time, tighter labour markets are expected to result in a further gradual rise in wages over time, and therefore higher pressure for corporate profit margins. Meanwhile, headline inflation will likely remain significantly depressed over the next couple of months due to the collapse in oil prices. However, against th...