Watch: How should investors be positioned in the late cycle?
As markets venture deeper into the late cycle environment, investors need to remain invested and be mindful about the kind of assets they choose for their portfolio.
Find out more about investing in the late cycle here.
The current market environment is representative of a late-cycle investing environment, and that's because we've had markets rising for many years across all asset classes. This means that valuations are now more difficult and expensive than they have been for some time. Investors need to be much more careful about the kind of assets we choose for clients.
The biggest decision for investors to meet their financial goals is actually to remain invested. The risk for investors is that they sell their investments because of short-term uncertainty and they get panicked. As soon as they do that, they crystallise any loss that they may have.
Pioneer in income investing
Schroders has been investing in income producing assets for decades now, well over 30 years ever since markets started, because that's been the persistent client need. One of the most important things we've learned is that you should not overpay for income. So if an income asset looks attractive because of its yield, you've also got to look at its valuation.