Hunting for Income
Lower cash rates and government bond yields have prompted a widespread hunt for income-producing investments. Although rates are likely to head up when the economy shows sustained signs of improvement, the yield climate will probably remain challenging for the foreseeable future. As a consequence, demand for investments such as dividend-paying stocks and investment-grade corporate bonds is likely to remain high. For an investor entering retirement, holding a well-diversified, managed portfolio will be key. Growth and defensive assets both play an important part of the [...]