Russ Koesterich, BlackRock‘s chief investment strategist, today looks at last week’s acute episode of Fed-obsessing: "For several years now, ultra-low interest rates and expanding central bank balance sheets have been nudging investors toward higher-risk assets such as stocks and high yield bonds. In this type of environment, any potential change in central bank conditions could have the potential to create a different investment environment."
"While we expect the Federal Reserve’s shift away from its current stance to be slow and gradual, investors will need to become acclimated to the reality that policy can also tighten. We are hardly suggesting that investors should abandon stocks, but we would argue that investors should prepare themselves for more bumps along the way. Additionally, we would suggest that investors be cautious about those areas of the financial markets where valuations have become more distorted by unusual monetary conditions. For US stocks, this would include small caps and even some dividend-payers, especially ones like the utilities sector."
Source: Baron's
Related Articles:
- Wealth is a Journey, Dividend Stocks Can Take You There
- 5 Higher-Yielding, Income Growing Tech Stocks
- Warning Signs of an Imminent Dividend Cut
- 7 Higher-Yielding Consumer Stocks To Build Your Yield
- 2 High-Yield Investments To Increase Income While Waiting On Dividend Growth
BlackRock: Beware Dividend-Paying Utilities Stocks
Posted by D4L | Sunday, June 09, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Long-term investors know that dividends can have a major impact on returns over time. When the stock market is struggling to make gains like...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We decided to go on a hunt for quality stocks that for one reason or another have been buried, and not just this year. We found three incred...
-
Buy and hold ... forever? It's a tall order, but a select few companies are potentially up to the task. You can build a wealth-compoundi...
-
Does the high interest rate environment we're living in have you feeling down? Here's something to remember that can help you turn t...
-
Dividend stocks can be consistent market-beaters. However, empirical research shows that the best dividend stocks tend to generate better-th...
-
High-quality dividend stocks are always worth loading up on. This is doubly true for companies that offer shareholders an attractive mix of ...
-
Some dividend-paying companies have seen their financials struggle over the years. These companies become vulnerable to dividend cuts which ...
-
Essentially, we’re looking for more Apples – tech firms with a large market cap (at least $1-billion) and the financial means necessary to p...
-
Numerous high-quality dividend opportunities are up for grabs at the moment, which may be appealing to some investors given the uncertainty ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.