Searching for income in volatile markets

Maria Merricks examines whether equities or bonds offer the most value...

Global equity markets have tumbled over the last few weeks following fresh fears over the health of the US economy and continuing concerns about eurozone sovereign debt, including rumours of a possible credit downgrade for France. The drastic sell-offs saw many investors running for the ‘safe havens’ of US treasuries and UK gilts, sparking strong rallies and pushing yields down to historic levels. With interest rates also set to remain low, the hunt for income is placed against a challenging backdrop. However, look closer at the situation and it is clear it is the governments causing ...