Focus on safety and value...
By almost every measure, financial markets are pricier now than they have ever been. But underneath the market averages, the action has been extremely uneven. Tech stocks, junk bonds, IPOs and crypto are off the charts but many of the strongest, safest, most predictable, and defensive companies are trading with high dividend yields and modest valuations relative to their growth prospects.
We’re talking about large companies in healthcare, telecoms, food and beverages, and even electric utilities, offering 5%+ dividends. And at these prices, there is potential for capital gains and a general rerating against the current market leaders.
A basic tenet of market success is the adage that good things happen to cheap stocks. And this low volatility sector of the market represents a nice hedge against the frantic action elsewhere.
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Investing involves risk to your capital. Past performance is not an indication of future results; the value of your investments can go down as well as up, and you may get back less than you originally invested. The information contained herein does not constitute investment advice or investment research and should not be relied upon to make any investment decisions. References to specific assets or securities are included for illustrative purposes and should not be understood as an endorsement or a recommendation to engage in investment activities.
Please invest aware.