Will market contrasts exacerbate volatility?

The Trojan Income fund's Francis Brooke says UK investors should shun volatility for the best returns.

Rarely has there been such a contrast between the strength of earnings and dividend announcements being made by many UK companies and the instability of the macro-economic environment, which lurches from one sovereign debt crisis to the next. The question faced by investors at present is whether these issues will exacerbate equity market volatility to such a degree that the benefits of equities as real assets, with the scope to protect investors from inflation, are swept away by a tidal wave caused by sovereign default. Many of the most attractive yields in the market with the best di...