Correction followed by a good recovery, once again rewarding the ‘buy the dip’ strategy that has worked so well over the past few years. However beneath the surface there has been a significant divergence in performance between investments that are more or less sensitive to bond yields. Among dividend paying stocks, the interest rates sensitives remain some of the biggest losers so far in 2018. While Cyclical Yield, dividend paying companies that are more sensitive to economic activity than yields, have performed much better. In this edition we revisit our positive view on Cyclical Yield as a tool to help mitigate or diversify portfolio interest rate risk. We believe understanding your portfolios interest rate sensitivity is becoming an increasingly important determinant of performance given rising yields.