SINGAPORE (Nikki Markets) -- Despite the uncertainty roiling stock markets, many private banks continue to advise wealthy clients to buy or hold onto equities, citing the attractive dividends paid by many blue chips relative to government bonds as well as the support provided by central banks in the form of lower interest rates.
DBS Private Bank, for instance, argues that valuations of stocks and other risky assets have fallen to reasonable levels after the correction over the past two weeks. According to the bank, the widening gap between dividends and the yield on government bonds strengthens the case for equities.
