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
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
