Q: I have a $140,000 portfolio (based on your ‘high growth/high dividend’ recommendations). I now have another $100,000 to invest. Should I buy more of the same stocks? Should I buy less/or no resources? Should I wait or jump in now as stocks are down? What do you recommend?
A: There is no stopping the “yield train”, and I for one can’t see a major correction on the horizon. So, I think the income portfolio still looks reasonably sound.
That said, I think the ‘Consumer Staples’ stocks (Woolworths and Wesfarmers) look very expensive, and I think at these levels, I would be more inclined to get closer to index weight on the resource stocks. This is swimming against the tide – however I think there is some long-term value with these.
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