This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• The rising economic risks that indicate it may be time to allocate to our defense-oriented Earnings Certain Proxy Portfolio, a recession-resistant portfolio built to provide low-volatility and durable earnings growth through all macroeconomic environments. Some portfolio members include Check Point Software, Novo Nordisk (NVO), and Mettler-Toledo (MTD).

• Mayur then looks at data that suggests an increasingly high probability for a downturn or recession in the months ahead. From S&P valuations hovering to near extreme readings, negative earnings estimate revisions for cyclical sectors, and household employment coming to a halt, Mayur indicates the probability of a recession is likely to unfold.

• To wrap up the discussion, Mayur shares the four principles companies must meet to be considered a quality company with high earnings durability. Watch this week’s strategy call for the latest analysis of our current volatile market.