Friday, October 7, 2011
Rosenberg Daily - What to do
The process of a secular rise in the U.S. personal savings rate and the dampening effect this will have on aggregate demand will be incredibly deflationary for some time. Against this background, we continue to advocate a relatively high fixed-income orientation in the portfolio — a focus on safety and income at a reasonable price, that includes high-quality corporates (and choose those with strong balance sheets, high cash reserves and minimal refinancing needs). And in the equity market, continue to screen for dividend yield and consistent organic dividend growth in non-cyclical industries.