Where Should My Money Go Now?
September 9th, 2009
With the world’s markets still trending up, equities would look _like the place to be, but there’s still considerable doubt as to_ whether the global credit crunch has passed its worst. However there are still some decent offerings out there for investors.
Corporate bonds are finding favour. Medium dated bonds from companies with strong cash flow are best. These will give far greater returns than cash or call or in term deposits. Solid Equities with strong cash flow and low gearing will always be a good bet. A core portfolio of blue chips include operations like Sky TV, The Warehouse, Woolworths on the Aust index, and another Aussie, Woodside Petroleum. Selected cyclical stocks can be good as well – Fisher and Paykel Appliances, News Corporation on the ASX, and a few of the Aust energy and resources stocks are worth looking at.
Infrastructure is one of the winners from the recession as Govt’s around the world throw money at it. Here look at Opus International, Fletcher Building Transfield International and Downer EDI. Other more specialised areas to centre on are China’s massive growth – although the markets there are very skittish, NZ – US dollar hedging – but only if you can handle the risk and Gold, which is a perennial favourite in hard times.
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