Equities best bet for long-term return as savers punished by lower yields
EQUITIES offer the best return for investors as bonds and corporate yields will continue to be under pressure, a new book by an Irish financial expert says.
The book by John Looby, of Setanta Asset Management, says interest rates and sovereign and corporate yields will stay low.
The expert has worked in financial markets for more than 20 years. The book says that despite equity markets powering ahead recently, stock markets will remain one of the best options for investors.
Mr Looby's book 'Troubled Times: Investing Through The Troika Years' is published by Oak Tree Press and is available at all book stores nationwide and also online from Amazon and The Book Depository.
A key message of the book is that interest rates, sovereign and corporate yields all remain markedly lower than "normal".
"In other words, that the saver is being sorely punished by the policy response to the global financial crisis," it said.
Despite the sharp rally of recent years or the set-back of recent days, the book suggests that equities are likely to continue to attract investors looking for a more attractive, long-term return.
"A strategy of investing in a portfolio of individually analysed, sensibly diversified and conservatively valued companies is recommended," the book indicates.
The book touches on everything from the politics of the eurozone to the behavioural motivations of bond traders and much else.
Mr Looby said if you are a saver looking for a home for your nest-egg, an investor looking to construct a portfolio, a policy-maker looking for better outcomes, or a citizen looking to better understand the drama of recent years, you will likely find something of interest in the new book.