When asked how they were reacting to the risk on/risk off environment that most markets have traded in this year, more than a third of the 573 respondents said they were taking the opportunity to buy stocks, while 31 per cent were sitting tight.
Source: FE Trustnet
Just 17 per cent said they were moving money into cash – contrasting with what many fund managers are doing at the moment. It seems investors have made a good decision: Rathbones’ Bryn Jones recently told FE Trustnet that markets could continue to rally for up to a year, boosted by a further round of quantitative easing.
"Whether or not the market will rally, investors need to think long-term and the best asset class for long-term is equity income," said Rob Pemberton, investment director at HFM Columbus.
"A portfolio should be made up of solid dividend-paying companies, with corporate and selected high yield bonds. The other asset class we like is multi-asset managers. An area I’d avoid right now is sovereign bonds, as their yields are so low."
Pemberton points to CF Ruffer Total Return and Troy Trojan as examples of funds with a long track record of getting things right.
Performance of funds vs sectors over 10-yrs
Source: FE Analytics
Our data shows both funds significantly outperforming their benchmarks over the past decade and in the shorter-term, too.