Income and Growth Strategy:Offensive yet Defensive
With the US government extending its fiscal stimulus measures, corporate earnings growth may accelerate in this year, while corporate fundamentals may once again become the key driver leading the stock markets up. However, uncertainties including the epidemic outbreak and US election could derail the markets. In this environment, the Income and Growth strategy may be an option for investors to stay “offensive yet defensive”.
Adopting a three-sleeve approach with asset classes of high yield bonds, convertible bonds and equities, the Income and Growth strategy aims to participate upside potential when the markets go up and manage downside risk during market downturns.
Mr Doug Forsyth, Managing Director, CIO US Income & Growth strategies of Allianz Global Investors, shares the latest market outlook and his views on the opportunities and positioning of the Income and Growth strategy, as well as the US Short Duration High Income Bond strategy.