Why you should rely on yield rather than capital return

ON UK INCOME

Income stocks are a relatively attractive area for investors given the ongoing volatility in markets.

We remain cautious about equities in general owing to our focus on cyclically adjusted P/E ratios as a metric of value – these measures tell us today that the European market does not represent compelling value. It is still possible, however, to find attractive stocks in this environment as long as you are selective. Given my cautious view on markets, most of my own wealth is invested in the European long/short fund Gary and I run. I have a modest net long position in equity markets, mostly through the equity income fund we run. I like this fund in the current environment for two reas...