By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 4 2016
Key points
- Assets with decent and sustainable yields are attractive in an environment of return volatility as they provide greater return certainty.
- Bank term deposit rates have collapsed, so it makes sense to continue to look elsewhere for income.
- Dividends tend to grow and be more stable than term deposits over time. The key for an investor is to work out what matters most: stability in the value of their investment or a higher/more stable income flow.