Five stocks to buy for the long term

Investors should remain cautious and buy for the long term, says professional stock picker Michael Turner. Here, he tips five steady stocks for your portfolio.

US Federal Reserve chairman Ben Bernanke's suggestion in May that the pace of quantitative easing (QE) could be reduced, with no new purchases after mid-2014, immediately hit financial markets. But while we are cautious, we believe that any US interest-rate hikes remain a long way off in 2015 or even 2016. The withdrawal of QE may affect the global growth cycle, and hence company sales and profits. This, coupled with modest economic growth, may warrant investor caution. Yet opportunities remain, and we think equities will continue to offer value over the long term.

We like Roche (VX: ROG), a research-focused pharmaceutical company. Roche discovers, develops and provides diagnostic and therapeutic products and services. Although Swiss-listed, a third of its revenues are generated in America. Its strong balance sheet and significant free cash flow enable it to invest in the research and development of new drugs, but also return capital to shareholders.

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Michael Turner is manager at the Aberdeen Multi-Asset Fund.