Market volatility trap? Why this income-first strategy may 'leave a lot on the table'

Core Viewpoint - Market volatility may mislead retail investors into focusing on defensive trades, such as dividend-paying stocks and bonds, rather than adopting a total return-oriented investment strategy [1][2]. Group 1: Investment Strategy - Investors are advised to avoid an income-focused approach, as it may lead to missed opportunities and unintended risks in their portfolios [2][3]. - A total return-oriented approach is recommended, which encompasses stocks, bonds, and other assets, rather than solely focusing on income generation [2]. - The firm warns against "yield-chasing," which involves taking on greater interest rate risk and shifting from investment-grade to high-yield bonds, leading to different risk and return expectations [2]. Group 2: Economic Outlook - The economy is described as resilient, with corporate profitability remaining strong, suggesting a favorable macroeconomic environment for investors [3]. - The emphasis is placed on balancing attractive yield with potential long-term capital appreciation, rather than solely pursuing maximum yield, which is considered a "yield trap" [4].