The shares have come off sharply on jitters about the slowing Chinese economy, but the fears may have been overdone. The shares yield 4.5 per cent and are on an artificially high p/e ratio of 35.Scottish & Newcastle: The European brewing group has built a significant presence in Russia and India, where beer consumption is growing rapidly, and some industry experts believe that it is likely to be taken over in the next round of industry consolidation. The group is expected to deliver a sharp improvement in profits, reflecting rising drinks volumes in the crucial US market and the turnaround of the Adam chewing gum business, bought for £2.5bn last year. For a global consumer brands company, the shares are modestly rated at about 13 times earnings and yield 2.6 per cent.GlaxoSmithKline: The world’s second-largest drugs group has one of strongest pipelines of potential new drugs. Demand for prescription drugs continues to grow at about 12 per cent a year in the US, where the group has a strong presence.

The share price has weakened in the past week following a US lawsuit over sales of antidepressants to children. That provides a good buying opportunity, with the shares valued at about 14 times earnings and paying a 3.5 per cent yield.Greggs: The bakery chain boasts a solid long-term growth record. Profits are likely to grow at a double-digit rate over the next few years as the group opens new shops in the UK and continental Europe. Trading in the first four months has been buoyant and three directors have recently bought large slices of the shares.

Soaring oil prices mean BP is generating massive surplus cash flow, enabling it to buy back its shares. They are valued at about 14 times earnings and yield 3.3 per cent.Cadbury Schweppes: The confectionery and drinks giant now boasts Warren Buffett as a shareholder. Such companies are to be found in healthcare, food-retailing, consumer staples, brewers, utilities and tobacco.Alliance Unichem: The pan-European distributor of prescription drugs is expanding into own-label generic drugs, which should strengthen profit margins. The retail division accounts for 20 per cent of group profits and has carved out a niche by providing specialist patient-monitoring services to the NHS.

The shares are valued at 13 times expected earnings for this year and offer a 3 per cent dividend yield.BP: With the bulk of BP’s oilfields located outside the Middle East, the group is less vulnerable than some competitors to political turmoil in that region. Typically, the more cautious strategy concentrates on companies with predictable earnings streams that are less exposed to the vagaries of the economy. With no clear signs yet as to which camp is gaining the upper hand, The Independent has prepared two portfolios, a defensive one for bears who fear we are in for a rocky ride, and an aggressive one for bulls who think shares are set to head into the stratosphere.Make sure you weather the weather, whatever the weatherBEAR PORTFOLIOA defensive portfolio is designed to be resilient to stock market squalls, although there is no guarantee against loss. The US market is priced at about 18 times expected earnings for 2004 while Europe as a whole is better value with a multiple in the low teens.