Canny investors can tap choppy markets

Those among you who truly, deeply, believe that dividends lie at the heart of wealth creation should be cheered up by movements in US Treasuries over the past couple of weeks.

These bonds had been driven to levels that generated ultra low coupons over the past year, with yields often hovering around 1% or 2%.

At those levels, a $10,000 investment in a gilt-edge instrument provides annual income of just $200. If you need an investment pot to deliver an annual income of $10,000 you would have to hold a whopping $500,000 in US bonds to hit your target.