Rathbone's Chillingworth sees income opportunities in down markets

The current tough macroeconomic environment is a prime hunting ground for income investors, according...

The current tough macroeconomic environment is a prime hunting ground for income investors, according to Rathbone’s Julian Chillingworth. But he warned of the dangers of value traps when selecting stocks. “Right now, over 40% of the UK market is trading above the average trailing yield of 3.3% – this is the average yield over 12 months. However, investors must tread carefully to avoid value traps,” he said. “The macro environment is in new and potentially dangerous territory – where the oil price is going to be in a month’s time is anyone’s guess. So we are sticking to fundamentals - com...