Q: Hoping you might be able to provide some insight as to why 'many' of my preferred share holdings are loosing value even when interest rates appear to be falling with expectations of a recession? Reviewing your earlier posts my understanding was Fortis is a solid company and valuations could be adversely affected with interest rates.
Truly appreciate all your great support. Ted.
Truly appreciate all your great support. Ted.
5i Research Answer:
We don't think this is company-related. With the tariff issue, investors seem very worried that inflation is going to pick back up, and that interest rates are not going to decline as expected. This has impacted several sectors and many income securities. FTS is a strong, stable utility. Its common stock is outperforming the market very nicely this year. We would not be overly concerned here. But, if rates do back up, most preferreds may struggle a bit.