Income stocks are an opportunity that are well worth taking

Confidence in equities has taken a hit and there is now a risk investors will look to cut their equi...

Confidence in equities has taken a hit and there is now a risk investors will look to cut their equity exposure even further. But this could be precisely the wrong thing to do, especially as far as income stocks are concerned. Our continued confidence in equities comes back to their long-term outperformance. Over the past 100 or so years, equities have generated a return of around 10%pa compared to approximately 5% for bonds. The price at which an investor buys into equities will have a significant bearing on how much returns will diverge from the average. Buying when the market is clos...