Question: What are your thoughts on Santos and Origin over the next four years?
Answer (by Paul Rickard): I have covered Santos today in my article on Switzer Daily today – see here.
Both stocks are captive to the oil price.
Over the next four years, probably OK – however I can’t but not feel that it is too early to buy.
Question: Like all retired investors I am seeking maximum yield. I already have substantial holdings in shares that are providing good returns.
I wish to maintain diversity but am finding it difficult to justify placing funds on term deposit at the current low rates.
Your thoughts on CME Capital Aust would be appreciated. They are currently offering what appear to be well above market rates and I therefore would have concerns about the security of my capital.
Answer (by Paul Rickard): High returns usually means high risk. You are right to be very concerned. Investing in an unsecured note carries risk. Be careful.
Question: If you had the money today to buy AMP shares or AMP Capital Notes, which would you buy please?
Answer (by Paul Rickard): Because of lower investment risk and potentially higher short term income returns, I would invest in AMP Capital Notes.
If however you were after a capital return – then I would invest in AMP shares as there will be no capital return from AMP Notes.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
