Blue-chips might be your best bet
Investors should not panic and focus on the best opportunities which can still be found in blue-chip companies with a long history of paying dividends, according to Franklin Templeton.
Franklin Templeton’s head of equities, Stephen H. Dover, said that under current circumstances many investors were acting out of fear and missing out on the market opportunities, instead of staying invested in the market and using the time to assess where the opportunities still existed.
“We believe some of the best opportunities may be in blue-chip companies that have a long history of paying dividends,” he said.
“Dividend yields may decrease as dividends could be reduced, but we are not seeing a massive shrinking in dividends at this time.”
According to Dover, high correlations between equities continued as investors were selling their holdings in passive vehicles, which in turn, resulted in selling of all stocks proportionately.
“It’s too late to panic-sell. In our view, it’s better now to consider reallocating within equities and to potentially rebalance asset allocations in balanced portfolios. We believe the current market should provide long-term opportunities for investors who stay the course or take opportunities as they arise.”
AUTHOR
Oksana Patron
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
