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2024 and the need for income

Investors looking for income face a landscape much changed by the standards of recent years. Concern about a long run-up in the stock market has attracted crowds into short duration income plays, tightening spreads and drawing interest to niche or new product areas. Equity income investing is back in vogue after a period dominated by technology and growth plays. This edition gathers some of Fidelity’s recent thinking on where to invest for income and gives direction to clients for the months ahead.

Investors looking for income face a landscape much changed by the standards of recent years. Concern about a long run-up in the stock market has attracted crowds into short duration income plays, tightening spreads and drawing interest to niche or new product areas. Equity income investing is back in vogue after a period dominated by technology and growth plays. This edition gathers some of Fidelity’s recent thinking on where to invest for income and gives direction to clients for the months ahead.

Get real: Inflation-beating income
Get real: Inflation-beating income

Parking money in ultra-defensive options comes with its own risks and offers no opportunity for capital growth.

Why the surge in EM sovereign issuance?
Why the surge in EM sovereign issuance?

Developing world governments borrowed as much in the first two months of 2024 as they did in the same period of any in the last 20 years.

The dividend pay-off
The dividend pay-off

Making money on the stock market in the long run is about more than just picking the right growth plays.

What makes a good equity income investment?
What makes a good equity income investment?

Income investing relies on companies being well-run enterprises that pass on dividends. The obvious question is: how can you tell which can do that?

Asian stocks enter the dividend age
Asian stocks enter the dividend age

While Asia has long been chiefly a growth story for investors, can government reforms unlock the value of dividend stocks in the region?

US high yield may be less stretched than you think
US high yield may be less stretched than you think

Investor interest in income strategies has squeezed high yield credit spreads. But a metric we watch at Fidelity suggests they may not be overpriced yet.

Asia high yield is not just China now
Asia high yield is not just China now

Worried by the risks of investing in Chinese bonds? The make-up of the Asian high yield debt market has changed.

Axing the ‘ex-Japan’: A new era for Japanese bonds
Axing the ‘ex-Japan’: A new era for Japanese bonds

Tailwinds stretching from index reform to rate hikes are lifting Japan's bond market from the doldrums

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