While he agrees that one can certainly still get income from equity dividends, he said for many of the markets, especially those where income investing has been leading the pack, valuations are no longer cheap.
Speaking at the Portfolio Adviser Alternative UCITS Congress event, he explained: “There has been a huge rally in capital value across all these asset classes and alongside that, things that have paid income have seen a huge uplift.”
Adding: “While that rise is not quite over, you are getting close to the point where the gains from that are probably largely over. Which means you need to be far more subtle in terms of how you put things on and far more clever in avoiding the downside.”
