This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+Cover+small+181214

Potter: Equities are better value than bonds

  • Print
  • Comment

Thames River multi-manager Gary Potter has warned investors to avoid jumping on the “bond bandwagon” and instead invest in equities.

Speaking to Money Marketing at the Cofunds investment forum in Hertfordshire last week, Potter (pictured) said there is currently a perception that bonds are the only place to invest due to market volatility.

He said: “Investors have been piling into corporate bonds, which have a 5 per cent yield on average, which is all right. However, over a 10-year period, the total return of corporate bonds has not returned as much as the equity markets, using the FTSE all-share.

“If you are going to beat inflation, you have missed the bond bandwagon. Investors should be investing in equities, which is where the best value is.”

Premier Wealth Management managing director Adrian Shandley says: “Gilts and corporate bonds are being seen as safer than they actually are. Equities have gone down over the last 12 years and inflation is higher than cash and so you cannot put your money in cash. The only defence against the current situation is a proper diversified asset-allocated portfolio.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth

Is there a growing need for financial advice


Fund Data

Editor's Pick



Poll

Will providers be forced to pay out compensation over annuity misselling?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments