Liontrust duo: Buying into miners on price weakness is 'absolutely daft'

Too early to enter beleaguered sector

Income investors buying into miners following the recent market falls are "too early", according to Liontrust's Stephen Bailey and Jan Luthman.

The duo, who run the £524m Macro Equity Income fund, said investors need to be mindful of how miners are paying for dividends and whether these will be maintained. "With valuations at low points, the miners are using cash to give back to shareholders instead of buying cheap assets. Now is the time to buy those cheap assets, not worry about satisfying shareholders," said Luthman. GLG's Dixon: Miners are like tech companies in the 2000s "Investors are better served being invested in businesses for the long-term rather than those trying to maintain ridiculously high dividends," added B...