Opportunities In Blue Chip

Blue Chip companies have characteristics which offer investors maximum versatility for both long and short term investing.

Short term investors can benefit from:

  • Continual Volatility
  • Excellent Liquidity
  • Excellent Range of Investment Products
  • Ability to obtain leverage through margin lending, options, warrants etc.
  • Ability to trade with a directional view that can be Long, Short and Neutral
  • Ability to buy and sell time and utilise unique investment strategies with Exchange Traded Options (ETO's)
  • Ability to hedge large positions and minimise downside risk whilst maximising profits
  • Ability to speculate on short term share price movements and corporate events (eg. profit results)
  • Ability to trade in companies which have underlying earnings and pay dividends giving a level of confidence over investment decisions.

Long Term Investors can benefit from:

  • Investing in quality companies which have established, long term earnings growth
  • Investing in companies which are the most researched and regulated securities on the ASX
  • Generate Income through dividends and derivative strategies (eg. covered calls)
  • Increase exposure through Dividend Reinvestment Plans or other corporate actions
  • Hedge and protect investments through the use of derivatives
  • Obtain leverage through various products (eg. Margin Lending, Warrants)
  • Investing in companies which have substantial liquidity

As a whole, the ASX Blue Chip market offers investors greater flexibility than the other areas of the share market. Sentinel's role is to apply its experience and knowledge within this area to give our clients a greater level of confidence over the investment process