Investors need to generate income, and as recent articles have shown, the best way to achieve this is through the purchase of investment trust shares. If February worries private investors, that is no bad thing. They should increase their cash holdings – a 30 per cent cash holding becomes more like a 60 per cent holding if equities fall by 50 per cent.
That will be a great position to be in at the time, if it happens, since buying at the right [or low] price is one certain guide to investment success. And if the bull market in equities continues to roar on, you will not be overexposed – but you will at least be profiting while still sleeping well.
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