Why UK income investors 'should exercise caution'

clock • 2 min read

There has always been a demand for income, but in the past decade, the hunt for yield has become more challenging due to the ultra-low interest rate environment.

Traditional yielding assets such as cash and fixed income, which have been a staple in income portfolios, have witnessed yields fall dramatically.  Understanding the 'technological revolution in healthcare' This means income investors are being pushed towards higher-risk areas of the market to meet their income needs. More recently, we have observed a yield curve inversion in several fixed income markets - typically a precursor to recession and a cause of elevated volatility.  While certain high yield areas within the UK fixed income market can be attractive, it is UK equities that...

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