Stocks May Rebound From Downgrade Plunge, Strategists Say
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America’s debt downgrade won’t keep the nation’s stocks down in the long term, and investors should consider buying large companies and dividend-paying stocks, according to U.S. equity strategists.
Bigger companies will do better than smaller ones because they hold so much cash and will be viewed as safer, according to an Aug. 7 Citigroup Inc. note. Investors should also look for stocks that pay dividends as the world’s largest economy slow, Oppenheimer & Co. wrote in a note today. JPMorgan Chase & Co. said that while the next two weeks may be “turbulent” for equities, the overall impact will be minimal.