The hunt for income
With bond yields falling and the hunt for income continuing, investors are increasingly looking at stable income.
With bond yields falling and the hunt for income continuing, investors are increasingly looking at stable income. This means many ‘bond proxy’ stocks, which delivered reliable and real income, have seen a flood of assets. However, the outlook for UK dividends is far from certain, with a number of cuts already having occurred. We asked Wellian’s Chris Mayo, Liontrust’s John Husselbee, Tilney Bestinvest’s Jason Hollands, and Evenlode duo Hugh Yarrow and Ben Peters for their outlook on UK dividends.
Meanwhile the interest rate cut by the Bank of England this month, the first since 2009, has refocused some investors. Going into the vote, Nandini Ramakrishnan, market analyst at J.P. Morgan Asset Management, was confident that the Bank’s moves could calm markets. Check out her views here.
As the pound remains down on its pre-Brexit levels, we also focus on where the currency can go now, and the potential future headwinds it faces. I talk to JPM market strategist David Stubbs about the outlook for sterling.