Buy Big and Stay Safe
For now, the best thing investors can do is buy big companies that are in all the big global markets, because most of the growth for years to come will not come from the US or Europe, observes Keith Fitz-Gerald of The Fitzgerald Group.
Gregg Early: I'm here with Keith Fitz-Gerald, chairman of The Fitzgerald Group and chief investment strategist of Money Map Press.
Keith, you've been in the market for 25 years. You're an expert in the global markets. Not only has the United States come off a big election, but China also had a major election. Where do you see the risks or the advantages for investors at this point?
Keith Fitz-Gerald: That's a very important question. I think that investors need to put this into context with what's going on in the bigger scheme of things. There's a lot of angst on both sides of the ocean.
Will Obama be good for us for another four years? Will he be bad for us for another four years? I encourage people to put the rhetoric aside. I think that Obama's victory suggests a couple things about the market.
It's a time to be stable, defensive, and ironically, compromise with regard to what you may have had as historical expectations. What I mean is, it's time to think about the big global stocks. Those are the defensive mega caps that have the experience needed to manage real growth and challenging economic conditions around the world. Most typically pay high dividends that offsets the risk of ownership, and I think they are far more stable than non-dividend-paying alternatives.
Small-cap investors better be careful, because I think we're going to have a volatile market in the next four years.