Investors have been crying foul after comments by the Federal Reserve concerning the future tapering of its accommodative polices. The Fed is worried about QE becoming too much of a good thing, leading to the formation of asset bubbles or runaway inflation.
For conservative income investors worried about the principal value of their portfolio, it’s not easy to focus on portfolio yield during times like these. However, strategic changes you make to your portfolio during a correction will have a profound impact on how you inevitably emerge from the crisis.
During any correction, I frequently spend a lot of time in deep thought over how I envision our clients’ portfolios will look when volatility eventually subsides. I think income investors should be doing the very same thing.
There are three areas that I don’t have exposure to today, but know I would like to when the market ultimately reaches a settling point: