Two safe haven stocks from the telecoms sector

At a 31% to the MSCI World benchmark, telecoms stocks are some of the cheapest around. However, low prices belie the recovery the sector has made over the past two years - and the steady stream of cash phone stocks are set to deliver in the future.

The turmoil of the past six months has sent global stocks to their lowest valuations in more than 30 years, on some measures. Cheapest of all, says Bloomberg, trading at a 31% discount to the MSCI World benchmark, are telecoms stocks.

But these low prices belie the recovery telecoms have made over the last two years. They also discount the steady stream of cash that phone stocks are expected to deliver in the future.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Eoin came to MoneyWeek in 2006 having graduated with a MLitt in economics from Trinity College, Dublin. He taught economic history for two years at Trinity, while researching a thesis on how herd behaviour destroys financial markets.