Read an interesting article recently about the change in the thinking about defensive stocks due to the low interest rates. People, especially SMSF want to get away from the very low interest rates but want to also feel safe in what they are investing in, hence the run up in what are considered defensive stocks at a time people are looking to get back in the market. Telstra in some peoples mind is becoming a growth stock due to its dominant market position and uncertainty being removed with the added benefit of the dividends.
I don't see the large drop in Telstra many people have been talking about mainly due to the uncertainty about when will that big fat divy get bigger and lets face it 2014 is not that far away.
One never knows what is around the corner and Telstra is more than likely to surprise than disappoint.
TLS Price at posting:
$4.66 Sentiment: Hold Disclosure: Held
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