Mixed performance for income stocks

ON UK INCOME

In recent weeks we have had a glimpse of the future.

Bernanke’s words on 22 May about tapering quantitative easing (QE) have offered market participants real evidence of how the financial world might look beyond QE. Questions over market vulnerability to a bond market sell-off are now discernible.  The conclusions are sobering.  When bond yields increase, most assets fall back. Those hoping that bond sellers would drive up equities with their cash proceeds have been disappointed.  It did not work out this way. The rise in bond yields caused commodity prices to fall to new lows.  Resource and mining companies, which were already some of ...