Stocks with reliable earnings and yield usually outperform growth stocks into the eye of a recession, this is exactly what we have witnessed over the last 6-months, a few important points to consider:
- High quality is the place to be, this is not the time to take on high-risk positions e.g. CBA remains up year-to-date and it’s also paid a very attractive fully franked dividend.
- Dividends can always be reinvested into market weakness that should add significant value / alpha when the economy does turn around.
- This could also be an ideal time to hold quality hybrids as you look to reduce a portfolios volatility.
In a bull market many investors look for outperformance through growth portfolios however this feels an opportune time to be more income-focused, MM has recently made available our Active Income Portfolio for direct investment which feels like great timing:
MM’s Active Income Portfolio – Open for Investment: https://marketmatters.com.au/invest/the-active-income-portfolio/
MM believes CBA will outperform through 2022/23
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