Income in the USA

Fran Radano, manager on The North American Income Trust

Aerial view of a city
(Image credit: © abrdn)
  • The US Federal Reserve is likely to keep rates higher for longer, supporting more defensive positioning
  • Income seekers have a wider range of options this year
  • It is a better environment for ‘value’ companies, rather than high growth areas such as technology

2022 created a new environment for income investors. After a decade where income was scarce, the US Federal Reserve (‘Fed’) raised interest rates eight times over the year. Financial markets saw a major adjustment. In bond markets, there was a significant rise in yields, in stock markets, high growth areas came under pressure, while ‘value’ areas thrived.

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