Going “Old School” With “Boring” Blue Chip Stocks
Submitted by QTR's Fringe Finance
One of the more batshit insane developments in modern financial markets recently is that owning profitable, dividend-paying blue-chip companies somehow became an unfashionable investment strategy.
What started with Alan Greenspan innocently taking a few hits off the monetary crack pipe under a bridge eventually turned into a full-blown, twenty-year addiction, with the entire financial system living on financial skid row waiting for its next fix.
Between 0% interest rates, quantitative easing and central banks treating every market hiccup like a life-threatening withdrawal, we’ve managed to create a financial system so thoroughly addicted to cheap money and rising asset prices that investors are practically embarrassed to own businesses that generate actual cash and pay it back to shareholders.
Instead, we’ve conditioned an entire generation to chase whatever speculative growth narrative happens to be inflating at the moment while ignoring enormous distortions in asset prices, capital allocation and risk.
The most remarkable part is that virtually nobody, aside from a couple of us tin-foil hat wearing permabear “grifters” writing newsletters seem to give a shit about any of it, provided the nominal price of their stocks, homes and other financial assets keeps going up. We’ve spent twenty years confusing asset price inflation with genuine prosperity, speculation with investing and central bank liquidity with actual wealth creation. It’s our financial Matrix. (Read: The Nerve Center Of Our Economic “Matrix” Revealed)
So perhaps it shouldn’t be surprising that one of my more interesting investment ideas heading into 2027 is something that would have been considered perfectly ordinary a generation ago but is hated now: buying a boring, profitable sector that pays dividends.
I was worried heading into 2027 that I wouldn’t have a broader outlook on the market, but now some ideas are starting to emerge organically. I have a sneaking suspicion that one of the biggest investment themes of 2027 is going to be something that would have seemed perfectly ordinary twenty or thirty years ago, but today feels almost revolutionary: owning boring, profitable, dividend-paying blue-chip stocks.
You know. Old school...(READ THIS FULL COLUMN 100% FREE HERE).