Sweet spot for equity income as yields offer up compelling value

The UK base rate is at a historic low of 0.5%, the FTSE All Share is offering a yield of around 5% a...

The UK base rate is at a historic low of 0.5%, the FTSE All Share is offering a yield of around 5% and investors are able to buy in to the UK market, which is trading at levels last seen in February 1994. We believe now could be a sweet spot for buying into the UK Equity Income sector. As far as the general market is concerned, the news is anything but sweet. We have seen widespread downgrades to economic forecasts, profit warnings, rights issues and dividend cuts. However, there is support for valuations in the medium term. We expect the unprecedented cuts in interest rates will feed thr...