With Interest Rates at Historic Lows, Investors Are Looking to Alternative Investments to Generate Higher Return Potential
Fidelity Investments® have announced the results of a poll of customers with at least $250,000 in investable assets on a range of income generation strategies. The poll found they are actively looking for dividend-producing stocks and corporate bonds for higher yields in this low interest rate environment.
The poll was taken during the live “Fidelity Viewpoints® Forum: Investing for Income” in Boston on June 13 where five Fidelity portfolio managers discussed a range of topics including Eurozone implications to the U.S. economy, opportunities in emerging markets, and that they believe many U.S. corporations are currently a quality investment in stocks and bonds.
Key findings of the poll include:
“This group of high-net-worth investors are realists about this low-interest rate environment, but are not resigned to accepting low returns,” said John Sweeney, executive vice president of Fidelity Planning and Advisory Services. “They’re willing to look to alternative products to find yield, but we encourage them not to stretch too far and lose sight of their underlying investment strategy and encounter unnecessary risk.”
Investors who are balancing higher risk and higher yields, can read a new Fidelity Viewpoint® article based on the content shared by the portfolio managers at the forum and entitled “The upside-down world of income investing.”
1 Barclays Aggregate Bond Index had a 7.12% return between June 12, 2011 and June 12, 2012.