Not all stocks in traditional sectors are quality businesses, although the low valuations and high y...
Not all stocks in traditional sectors are quality businesses, although the low valuations and high yields available do provide a temptation to buyers. Cheap investment into longstanding, respectable companies when there is little chance of recovery has always been a problem, says Adrian Gosden, fund manager at SG Asset Management, noting this has been the case in the retail sector. He says: "Investors search for stocks with high yields, often due to the company being in decline, which can lead to a value trap." Patrick Edwardson, income fund manager at Baillie Gifford, says: "It is exace...
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