How volatility is changing the income story in US markets

A so called 'dash for trash' could see investors that are focus on 'quality income' in US markets underperform in the coming months, according to Stephen Thornber, fund manager at Columbia Threadneedle.

One of the trends that really shone through last year was the relative outperformance of the consumer sector. Thanks to the lower oil price, along with employment growth and, to a lesser extent, wage growth, consumers felt more confident to dip into their pockets. This is why we saw strong performance from companies in the defensive consumer staples sector and at the lower end of the consumer discretionary sector. Within our portfolio, this includes the likes of McDonald's, Limited Brands (which owns Victoria's Secret), and Six Flags Entertainment which all benefited from increased cu...