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Janus Henderson ( JHG ) recommends 55% equities, 45% bonds amid

recession fears

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Tariffs threaten global growth, prompting shift to

investment-grade bonds

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Potential recovery catalysts in Europe and China include

fiscal

stimulus

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By Saeed Azhar

NEW YORK, April 10 (Reuters) - Janus Henderson ( JHG ), which

manages $379 billion in assets, is advising investors to cut

stock holdings and buy more investment-grade sovereign bonds as

tariffs threaten to slow global growth, its global head of its

multi-asset strategy said.

Janus Henderson ( JHG ) now recommends a portfolio of 55% equities

and 45% bonds, compared with its call at the start of the year

for 62% equities and 38% bonds, Adam Hetts told Reuters.

"We don't think this is the environment that clients want to

buy the dip quite yet, because there could still be more

downside," Hetts said. He cited a negative scenario of "the 10%

baseline, the tariffs on autos, aggressive counter tariffs and

trade war-style escalation with China and Europe."

His base case is for a market selloff and the potential for

bearish and recessionary cases to take hold.

The stock market could go from a disorderly selloff to a

more orderly selloff because the recession risk "is much, much

higher" than it was a couple of weeks ago, Hetts added.

"We've gone to an equity underweight in the portfolios,"

Hetts said, more neutral on U.S. assets and slightly underweight

on international investments.

"We're headed towards a tariff-induced global slowdown right

now in the very short term. Europe and China could have

potentially more downside than the U.S., but coming out of that,

that might be the place to go," he said.

He cited fiscal stimulus in the wake of Germany's elections,

potential resolution of the Ukraine-Russia conflict and fiscal

stimulus in China as factors that may be catalysts for

recoveries in Europe and China.

"There are these potential upside catalysts in Europe which

was much cheaper as a starting point than the U.S. and then

China's been committed to fiscal stimulus and we think that's a

story that will play out for quarters to come," he said.

For now, investors should allocate more funds to high-grade

sovereign bonds to preserve capital, Hetts said.

"When we're looking to de-risk... we're looking at

investment grade sovereigns, and less so credit because we're

also seeing volatility in credit," he said.