Fearing stock market rout, investors seek shelter in dependable dividends

LONDON - Defensive equity strategies focused on high payouts and steady earnings have gained in popularity this year as investors flock to safety, worried the biggest stock market rally in decades is about to come crashing down.

The inflows accelerated at the start of May, when hopes of a truce in a trade war between the U.S. and China were dashed.Unusually, focusing on the parts of the stock market considered safer not only protected investors from the worst of the sell-off late last year, but also helped them outperform during the first-quarter rally of 2019.

The S&P 500 is up a whopping 16.7% this year, soaring to a record high last week, but an index tracking just the “low volatility” stocks in the S&P 500 is beating that, up 17.4% year-to-date. Low volatility also outperformed in 2018. The respondents also said they increased their cash buffers to 5.6% from 4.6% as they ramped up protections against a market slide.

The market could double, triple top! Watch out below. Recommend SBUX and PAYX. No volatility! Wide moats

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

There’s a big flaw in stock-market bulls’ logicExpecting the Federal Reserve to aggressively cut interest rates flies in the face of common sense.
Source: MarketWatch - 🏆 3. / 97 Read more »

Bernstein studied 119 years of history — including the Great Depression — and nailed down the 5 things every investor should learn about stock-market crashesExtremely high and extremely low volatility are more prevalent today, and these lessons from Bernstein will help you navigate the next big episode. Ermmm every? RayDalio
Source: BusinessInsider - 🏆 729. / 51 Read more »

A renowned market bear explains why traders are operating with too much 'blind faith' — and makes the case for a 65% stock crashEveryone assumes that Federal Reserve interest-rate cuts are a surefire bullish driver for stocks. John Hussman explains why that's flawed thinking. 65% huh As Trump leaves. Same as Reagan and Bush. 65? No.
Source: BusinessInsider - 🏆 729. / 51 Read more »