Equities  

Beware cash flow yields on global equities

The odds of a drawdown are greater than usual, as is its magnitude, and the chances of negative real and nominal returns are also heightened.

If the cash flow yields of late 1990s are anything to go by, equity investors may well be borrowing returns from the future every day that equity markets keep climbing.

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Caveat emptor.

Rory Maguire is managing director of Fundhouse