Telstra and the banks are a buy if you are a long-term investor

Founder and Publisher of the Switzer Super Report
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Let’s imagine you don’t hold any Telstra shares and you are wondering if they are a buy right now. Or else, let’s assume you hold shares and have seen the share price spike and fall and you are wondering if it’s time to dollar cost average to drop your overall average holding price of the stock.

It’s a legitimate question with today’s opening price at $2.87 after a seeing $2.72 on May 22. Are the smarties starting to say “that’s a big enough correction”? Is the appeal of the dividend getting too much for yield-chasers, even if Telstra has to cut dividends again more than expected in a couple of years’ time, and Bill Shorten bans tax refunds for most SMSF retirees?

The same kind of questions are being asked in relation to the Big Four banks with the standout question being: “Is the Royal Commission fall-out for the banks’ share prices done and dusted?” Clearly, some smart players are nibbling right now, knowing that there could be further surprise bad news but just how bad will it be?

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