Himsworth: Is it time to switch from UK income to growth?

Eden Financial's Leigh Himsworth said appetite for UK income stocks could be about to wane and investors may become more willing to pay a premium for growth names.

The manager said the Bank of England’s recent move to cut the UK’s growth forecast for the year from 0.8% to zero could be the catalyst for investors to place greater emphasis on growth rather than income. “Ultimately, I think investors will begin searching for growth and may well become happy to pay a premium for this too as even poorer than expected economic figures come to light,” said Himsworth. “In a negative growth environment, I would sooner have a large proportion of the portfolio in stocks that can survive the storm and deliver a 10% annualised total return, whereas income st...