A growing economy increases the chance of rising interest rates.
How Can I still generate income ?
Invest in total return strategies
Bond investors are challenged by the current market environment and should search for yield, while controlling their interest-rate risks. Total return strategies are created to generate positive returns throughout all cycles, thanks to a dynamic duration allocation and a large diversification from AAA bonds to high-yield and convertible bonds, and even emerging market bonds.
Invest in alternative asset classes with a lower correlation
You should also consider increasing your exposure to absolute return strategies. These strategies generally have a higher expected return in this market context, with lower volatility. Also, they have the lowest correlation to both European and US government bonds.
Invest in an all-in-one multi-asset strategy
Of course, it is a challenge for individual investors to manage portfolio duration, seek the appropriate higher-yielding bonds and invest in other asset classes, including equities. A multi-asset strategy is a flexible portfolio with a target return and a regular income that can invest in all available asset classes, based on the outlook for the financial market risks and opportunities.