On March 20, AdvisorOne, a leading online resource that publishes investment news and market data, issued a story on a new survey from Legg Mason, a family of independent asset management firms, that indicates a majority of investors – 74 percent – say it's a good time to be invested in equities.
Further, 52 percent of respondents added that they are now more inclined to use equities to generate investment income, with 25 percent indicating that they plan to increase their allocation in these holdings over the next year.
With more investors saying that they aren't experiencing the returns they had hoped for on their equities, Matthew Schiffman, the managing director at Legg Mason Global Asset Management, gave some advice to investors reading the report's release.
"Income-oriented investors need to consider strategies that are focused on outcomes," he said in a statement. "Start by establishing a realistic rate of return based on long-term goals or the need to satisfy liabilities with income."
The report stated that the most significant challenge investors faced regarding income investing was their need to "accept risk to obtain good yields." This was top concern of respondents, topping 15 other challenges that were evaluated by the survey.
This release underscores the fact that investors who are concerned about their exposure to potential losses should explore risk management tools that allow them to better adapt to a sometimes volatile market.
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Categories: Risk Management, Trading & Portfolio Strategies