By Ku Swee Yong
In the first half of August, a few days after Standard & Poor’s downgraded US debt and caused a 600-point drop in the US stock market, a related entity S&P Equity Research published their stock recommendations which consisted of big names such as General Electric, PepsiCo, McDonalds, Abbott Laboratories, etc.
This list of high quality companies were selected based on S&P Equity’s opinion that investors should stick to traditional matrices such as dividend, consistent profits, strong cash flow, minimal debt, large cash reserves, etc. Given the seesawing equities markets, they recommend that investors go back to basics and examine fundamentals.
The thin ray of positive light coming from theUSis for interest rates to remain low over the next two years, hopefully on the back of aUSrecovery. Let’s not forget that troubles in Europe and Japan may delay the US recovery by some more.
Are there safe …