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
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
