Is China the next hotspot for cheap dividend payers?

EQUITY INCOME

Being an income investor today can mean buying the most expensive corner of the market, but Jacob de Tusch-Lec, manager of the Artemis Global Income fund, says China is an interesting exception.

The current bull market in equities has – despite the occasional break for worries about eurozone crisis or the US debt ceiling – lasted for almost five years. By now, we are all familiar with the arguments in favour of stocks. Valuations are reasonably supportive compared to other asset classes; monetary policy is lax; government bonds are overpriced. The consensus seems clear – equities are the only asset class worth owning. The very familiarity of those arguments, however, carries risks. These pro-equity arguments may be rational – but it seems likely they are somewhat ‘in the pric...