Opportunities in Infrastructure, Asian credit and Commodities for Capital Growth Investors
In the news this week for capital-growth investors, infrastructure offers opportunities, while certain ETFs provide commodity exposure. Looking abroad, investors with a flexible approach can find pockets of opportunity with Asian credit.
Identifying Yields Capable of Growth (FT Adviser, May 2)
The market equates dividends with financial strength and over the long term are a key determinant of equity returns. According to the author, it is “critical that investors individually assess the resilience of each potential investee company to ensure the dividend is secure in perpetuity and, preferably, able to grow on a compounding basis.” Try to find “sustainable yields that are capable of growth” and remember “absolute risk to capital must be as low as is practical.”
Fund Review: Investors Pile into Infrastructure (FT Adviser, May 22)
With continued growth and a strong historical performance, “infrastructure is fast becoming an asset class of interest to many investors.” It remains a solid investment especially with the proposed tax cuts by President Trump, commitments for increased infrastructure spending, and the availability of capital. Along with the diversification benefits, infrastructure offers investors the potential for capital appreciation and continues to gain interest.
