In today's investment landscape, the mounting uncertainty
about growth and income from traditional investment sources has
created a conundrum for yield-seeking investors.
In order to produce sufficient yield, investors have several
options which include the following: increase the duration of their
fixed income portfolio; reduce the credit standards of their fixed
income portfolio; or increase their exposure to the equity markets
with the hopes of enhancing a modest dividend yield with capital
gains. The prolonged near-zero interest rate environment has
increased the risk of rising interest rates and inflation, reducing
the attractiveness of increasing fixed income duration. High-yield
bonds are producing the lowest yields on record and may not
sufficiently compensate investors for taking on more credit risk.
Equity markets have recently displayed diminishing equity premiums
and heightened volatility. Increasing exposure to equities in many
cases does not fit into an
