Consumers might do just as well to keep their investments in defensive or income-based assets over the coming months as the economic recovery is likely to be much slower than anticipated, argues CSAM's income manager.
Leigh Harrison, CSAM’s income funds portfolio suggests investors should now take a more defensive stance, as the "stabilities" of the perceived US economy are not as stable as many investors might believe, and bond yields are in fact much healthier than might usually be seen under an improving economy. In particular, Harrison argues corporate profits will return only single-digit returns over the coming months – a profit margin which is suited to income funds - as the so-called US economy recovery is in fact only stable because the comfort zone has been “bought” by extremely low interest...
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