Market Factors: The party is just beginning for dividend stocks

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Market Factors: The party is just beginning for dividend stocks
Market Factors,Marketfactorsnewsletter

Plus, why investors need to pay attention to AI

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Today we’ll tackle a CIBC strategist positing a powerful rally in income equity sectors, discuss technology advancements as democratizations, find some new music and look ahead to upcoming data.Interest rates are heading lower on the back of central bank rate cuts and it takes only a Fisher-Price level of market knowledge to know that dividend paying stocks should perform well as a result.

As for timing, Mr. de Verteuil is using the 35-year history of Canadian bank term deposits as a template. He found that outflows have occurred 350 to 400 days on average after the peak in short-term bond yieldsThe domestic two-year bond yield peaked on Sept. 20, 2023 and has declined steadily since. September 20, 2023 was 355 days ago.

BofA Securities analyst Alkesh Shah thinks investors should be paying attention to AI. He outlined an interesting framing for his optimism, citing AI as the third stage of democratization through technology.

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