T. Rowe Price: The income trade is long in the tooth

Randal Jenneke, head of Australian equities for global investment manager, T. Rowe Price says it’s a risky time to own high yielding, “bond-proxy” stocks. The SMH reports that Jenneke has completely sold all his holdings in Australian telcos, infrastructure and utilities companies – except for Mirvac. “Telecommunications companies such as Telstra, the major banks, Sydney Airport, infrastructure companies such as Transurban as well as property companies fit neatly into the bond proxy category.” So where to park your cash then? Jenneke suggests investors focus on companies that are growing their earnings overseas. (Source: SMH)