Reversal of 'Goldilocks' era has changed prime concerns of the market

We are cautiously optimistic about UK equity income investing in these turbulent times. Current mar...

We are cautiously optimistic about UK equity income investing in these turbulent times. Current market conditions are the reverse of the 'Goldilocks' years to June 2007. Now the market is concerned about slowing growth, inflation pressures and tight credit conditions. We believe we are in a low growth world, with deleveraging and no further significant benefits from changing trade barriers. For UK equities, we estimate a potential long-term annual return of 7%-8%, based on a 4.25% dividend yield, 1.25% real dividend growth (20-year average) and 2% inflation. As dividend yield and dividend...