Chris Dillow 

The yield trap

Chris Dillow

Chris Dillow
The yield trap

The recent sharp fall in stock markets has left many shares looking cheap. This can be a dangerous snare, and not just because in fast-moving markets the old saying is true: 'never try to catch a falling knife'. It’s also because stocks are sometimes cheap for a reason: a high yield is often a sign of poor growth prospects or of extra risk – and risks can sometimes materialise.

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