The yield theme continues around the share market and, with term deposit and call rates potentially under further downward pressure, SMSF investors can’t ignore the attractions of the yield favourites: the banks and Telstra.
But there are several reasons for investors to look beyond a narrow list of stocks – perhaps even to BHP.
The first reason is the concentration of risk, especially with the banks, in such a portfolio. While the potential risks (either individually or collectively) for the banks may be low, the bears are still apt to re-appear, citing the risk of house prices being over-priced and subject to a fall. There have been renewed murmurs from a few overseas hedge funds along these lines.