Equity income at risk as QE curtailment raises 'new paradigm' fears

Equity income stocks could be among the biggest losers from an environment in which investors prepare for a tapering of US QE, investors have warned.

Speaking to Investment Week, Jupiter UK Growth co-manager Steve Davies (pictured) said the market sell-off has led equity investors to consider positioning more carefully, and others are concerned a “new paradigm” could hit equity income. Jacob de Tusch-Lec, manager of the £192m Artemis Global Income fund, said investors should not move too quickly, but added the “crowded” equity income trade is at risk. “There are still some things out there that do not add up – US inflation is very low. In this environment, when you go out with very strong macro views, you tend to regret it a week l...