Gordon Pape: Quality companies are going to survive this market turmoil. Here are the sectors and stocks to target
However this plays out, the crisis will eventually end. What investors need to do now is avoid what one reader calls “The baby with the bathwater syndrome.” In other words, don’t sell stocks of sound companies that are going to survive, no matter what happens. Hold on to them, collect dividends and, if you have some cash put aside, buy them while they’re cheap.
In the United States, companies that have suspended dividends include Boeing, Delta Air Lines and Ford. Others, including Occidental Petroleum, have chopped their payouts. The benefit of holding a few years’ worth of cash is that you have resources to draw on if the stock markets crash. There’s no need to cash in your beat-up stocks or equity funds, and neither do you have to deplete better performing bonds and bond funds. The cash can be held in high interest savings account mutual funds or exchange-traded funds within an investment account, or in a high interest bank account held outside the portfolio.
globeinvestor The globe and mail is advertising the best stocks to buy during this crisis and when you click the ad they try to sell you a subscription. How sick are they to try to profit from this crisis?