Markets rose slightly on Thursday despite disappointments in jobs and retail sales. How should investors be positioned in this type of environment? Keith Goddard, president of Capital Advisors, shared his insights.
“Zero percent interest rates are very important," Goddard told CNBC.
"Every time you get disappointing news, it seems to be offset by the notion that we’re going to have lower interest rates for a while longer and that forces people to put their money somewhere where their expected return is better than zero,” he explained.
Goddard said investors should look into high-quality blue-chip stocks.
“One of the places you can go right now is in stocks like AT&T, IBM and Kraft Foods,” he said.
He said the stocks mentioned above are safe and should see rising dividends for some time.
“You can get a dividend yield of 4 to 5 percent on a basket of stocks that covers multiple industries, pays 12 times earnings or less, and that kind of investment is going to do well over the next 3 to 5 years almost regardless of what happens to the economy.”
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Goddard owns positions in IN, T, LLY, KFT, AAPL, GOOG, CSCO, INTC, AMZN and VOD.