Veteran investment guru says shift is happening amid a slowing global economy
Investors are switching investment strategy as fears of a global slowdown intensify.
Veteran investment guru Rida Morwa, CEO of Aiko Capital and former CPA with 30 years of investment experience, says buying stocks and bonds that pay high dividends is the smart move right now.
"Counting on growth alone when it comes to investing is no longer a viable option," Morwa said. "In an environment where growth is slow, inflation is low, and interest rate trends continue to decline, the hunt for high yield, especially by the aging Baby Boomers, will continue and will become even stronger."
Morwa manages one of the top-rated Seeking Alpha communities and says that this month he has seen a 20% rise in subscribers seeking high-income.
"In this slowing global economy, we're seeing hungry investors streaming into high-dividend stocks," Morwa said. "They realize that monthly and quarterly income from more rational companies is a much better bet than relying on the erratic and volatile Mr. Market."
Central bank policy recognizes risks
Morwa says that the actions of multiple central banks is being synchronized to stabilize the global economy and he believes recession risks are being pushed back.
"If executed properly, these international bankers have a good chance of shifting the economy back to growth next year, and thus pushing any recession risks until 2022 at least,” he said. “In the meantime, High Dividend Opportunities is earning a 9% dividend yield for their investors by focusing on high dividend value stocks and funds, including preferred stocks, baby bonds, property REITS, and utilities."
Morwa is expecting that equities will gain in 2019 with the S&P500 Index reaching well above 3,000. Growth stocks should also recover some losses.
"However, lower economic growth and low inflation means that the hunt for yield will continue. High-dividend stocks and sectors which have had a stellar performance so far in 2019 will continue to outperform," concluded Morwa.