Is the Federal Reserve about to wrap up this tightening cycle? Many investors appear to be betting on it, with the Nasdaq 100 up almost 20 percent year-to-date.
Tech is the 21st century’s most interest rate-sensitive sector because stocks trade on the promise of future cash flows. But traditional income stocks too enjoyed a big rebound last month: After being deep in the red, the Dow Jones Utility Average is now solidly in the black. And a substantial majority of stocks in my Utility Report Card had a positive Q1, while adding to gains so far in April.
Encouragingly, many of last year’s largest decliners are among 2023’s biggest winners so far. That includes Algonquin Power & Utilities (TSX: AQN, NYSE: AQN), which we now own in the Aggressive Holdings through its 7.75 percent mandatory convertible preferred of June 15, 2024 (AQNU).
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