Bank of America believes the US will enter a recession and that could have spillover effects to other regions – including Asia. “In the past seven U.S. recessions since 1973, Asian stock markets have fallen by an average of 50%, and [earnings per share] 30% bond. Both shallow and deep recessions are terrible for Asia,” Bank of America strategists, led by Ajay Singh Kapur, said in a July 18 note. a “shallow” recession of the United States, where gross domestic product would fall by approx. US recession remains bad news for Asian/Emerging Markets (EM) stocks,” Kapur added, noting that Asian stocks have lost about 34% of their market value this cycle. , while EPS growth is only down 6%.History also shows that Asia’s price-earnings multiples could fall another 20% if the bank’s forecast is Bank of America analysis, a recession ‘So how should investors position themselves in such an environment?’ We reimagined our list of 26 defensive, high-quality stocks – Stocks large stock rated Buy (market cap above) by BofA [$10 billion]) with low price volatility and earnings, high profitability and high dividend yield – that reflects our cowardice and need to survive the bottom,” Kapur said. coverage ratio of the Asia-Pacific bank They also pay a dividend yield of over 2.5%.A variety of financial stocks appeared on the bank’s screen.In addition to the above criteria, these stocks have a return on assets – a return metric commonly used in the sector – of more than 1%.The list includes Bank of Mandiri of Indonesia, China Merchants Securities, Securities Haitong and Public Bank of Malaysia The screen also shows a number of non-financial stocks with positive free cash flow and expected Return on Equity in excess of 10%.China Shenhua Energy is one of three. Energy stocks make the bank’s list 2% this year, according to Bank of America estimates, Singapore telecommunications giant Singtel is also on the list. America believes the company will grow EPS of 39.1% this year. Shares have rallied 9.6% year-to-date. Other stocks shortlisted by the bank include Taiwanese electronics contract maker Hon Hai Precision, Australian telecoms company Telstra and Chinese electrical equipment maker Midea.