For nearly two years, money has flowed into assets that are polar opposites: At one end of the spectrum, investors have been attracted to small company stocks and tech stocks, which offer the prospect of high capital appreciation as long as we experience robust economic growth. At the other end, bonds provide regular income and investors have snapped them up as protection against continued economic sluggishness, or worse.But why settle for either/or when you can have both growth and income?
Financially strong blue-chip companies offer consistent earnings growth, and their reasonably priced shares are pay hefty dividend yields. “Dividend stocks seem to be some of the most compelling buys around,” said Hans Olsen, chief investment officer of J.P. Morgan’s Private Wealth Management business. “I think what you’re seeing is people falling out of love with equities right now and the uncertainty that investors have with the type of environment we’re in. Despite strong corporate profits and strong balance sheets, people seem to have turned their backs on equities [in favor of] what they think is a sure return in bonds.”
Source: MoneyWatch
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Posted by D4L | Thursday, December 09, 2010 | ArticleLinks | 0 comments »________________________________________________________________
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