Investors should not run away from stocks despite current market volatility and instead look for global dividend-paying equities, says Robert Kapito, president of BlackRock, a U.S. asset manager with over $3 trillion in assets.
BlackRock is advising clients to have 60 percent of their portfolios invested in stocks, 20 percent in corporate bonds and 20 percent in commodities, Kapito tells CNBC.
"We're talking about global equities" such as Verizon, Merck and Intel, "all with very, very good dividends, dividends that are much higher than what you can get in the Treasury market," Kapito says.
Exchange-trade funds, meanwhile, are a good choice for those looking to invest in commodities.
Gold has been a popular investment but agricultural commodities such as grains deserve serious watching, because "when people around the world do better they want to eat better," Kapito says.
BlackRock Chairman and CEO Laurence Fink tells Barron's that he likes divided stocks as well, including General Electric and Chevron since they are adding more value to portfolios than are Treasury bonds.
Some stock-market watchers say they're going to keep a close eye on economic indicators involving consumer spending in the coming days.
Summer back-to-school sales could serve as a weather vane for rest of the year.
"I will be looking for any data that show what back-to-school (sales) might look like, and later, into the fall, we'll be looking for what the holiday season might look like," says Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland, which manages about $14.8 billion, according to Reuters.
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