Are markets set for a dose of reality?

Live Charts from MarketEye

Almost six years on from the US Federal Reserve’s first injection of QE, the landscape created by loose global monetary policy remains somewhat distorted. Despite consistent economic disappointment, the zero interest-rate backdrop has forced investors to chase returns. Meanwhile, greater confidence in the ability of central banks to backstop markets has fed risk appetites.

With this backdrop of lower growth and increased volatility likely to remain in place for some time to come, Newton’s Global Higher Income team continues to believe it is appropriate to invest in those companies whose business models are durable, self-financing and structurally driven in order to weather the risks that still persist. A good yield and growing income is likely to remain an important driver of investor’s total returns.

Newton Global Higher Income team

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