Blue chip still good investments, says expert

Tue, 15 Jan 2008

Blue chip companies should remain good investments during any period of financial instability, one expert believes.

Jason Hollands, head of group communications at F&C Asset Management, said: "When the economy gets tough, smaller companies tend to be more reliant on bank borrowings, whereas some of the big global companies are less exposed."

He added that retail companies might not make for good investments as consumer spending was set to drop, meaning they could face a tough time.

Banking was another sector that might offer poor returns on investments, he said.

At the start of 2008 Tom Stevenson of the Daily Telegraph predicted that, in terms of investments, the FTSE 100 would outperform the FTSE 250.

In December 2007, HBOS - the UK's largest mortgage and savings provider - said it predicted that the amount of money in deposit based savings accounts would increase because of the volatility in over investments such as stocks and shares .
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