Q: In my RRif I own Key & PPl, high yielding stocks to help cover forced withdrawals.
They declined on Friday despite a drop in bond yields.
So you think the decline was due to a drop in Wti?
Trump intends to increase tariffs which could result in higher interest rates due to inflation and his energy policy could lead to lower oil prices.
As a result of the above should I reduce key & Ppl & invest the proceeds into companies that will benefit from higher interest rates such as Mfc & Slf
They declined on Friday despite a drop in bond yields.
So you think the decline was due to a drop in Wti?
Trump intends to increase tariffs which could result in higher interest rates due to inflation and his energy policy could lead to lower oil prices.
As a result of the above should I reduce key & Ppl & invest the proceeds into companies that will benefit from higher interest rates such as Mfc & Slf
5i Research Answer:
There was no news on either, and both are up big this year (PPL 22% and KEY 40%). The drop on Friday was relatively minor in the context of the gains. Typically, these companies depend more on volume rather than pricing, but pricing can still change sentiment. We would see no need to sell here, but would be fine adding the others noted if more diversification is needed.