An inversion of any type might sound ominous, but this one is likely a good thing for stocks. For an investor aiming to hold something for the long term, equities are looking relatively attractive, according to Bespoke co-founder Paul Hickey.
“The takeaway is, if you can get an annual yield from a company that’s going to pay you more than the 30-year Treasury and the company has a history of raising its dividend, for the long term, it’s a better alternative than a Treasury,” Hickey said.
JJ Kinahan, chief market strategist at TD Ameritrade, also says the hunt for yield might help support stocks — at least in the near term. Investors will continue to seek out more “safe stocks” — particularly those in the S&P 500 that offer an attractive dividend but have less perceived downside risk in a trade-related sell-off.
