After a rocky March, the financial markets came roaring back strongly in April. Much of March’s pullback was driven by uncertainty around the onset of the conflict in Iran. While the situation remains unresolved, a noticeable de-escalation last month helped restore a sense of calm among investors.
As a result, the markets responded positively and reached new record highs. The S&P 500 climbed by roughly 10% for the month, finishing above 7,200. In addition to the ceasefire in Iran, the surge was aided by a new batch of robust corporate earnings reports and renewed confidence in the AI sector, which is once again leading market growth overall.1
Although energy prices remain elevated due to ongoing disruptions in the Strait of Hormuz, Wall Street appears to be looking past this. Investors are signaling confidence that fuel prices will moderate over time and that the broader economy remains strong enough to absorb some temporary inflationary pressure.
Interest rates also reinforced this outlook. After spiking in March, long-term rates ultimately remained relatively stable from the start of April to the end. The interest rate on the 10-year government bond started the month at 4.32% and finished at 4.39%.2
Now, could another pullback be in store? Of course. Should geopolitical tensions escalate again, we could see renewed market fluctuations. However, April’s strong rebound is a good indication of the underlying durability of our current economic environment.
Your Portfolios
- Thanks to April’s rebound, I’m happy to report we are back on track with our goals for your portfolios. As you recall, March’s volatility and spike in interest rates led to a slight loss in asset values for most of you last month.
This month, however, those of you in our most conservative portfolios of bonds and bond-like instruments should see values back up by a median increase of just over 2% year-to-date. Again, that’s a median figure, and your own percentage may be slightly higher or lower depending on your individual holdings. Still, on a pro rata basis, the increase puts us back in line with our target goal of approximately 6–6.5% interest and dividend return annually, which is good news. Naturally, for those of you utilizing our stock-divided strategies, results have been even stronger based on the stock market’s approximate 10% gain in April.
As I noted last month, the business development companies (BDCs) in our portfolios, which struggled early in the year, began performing strongly in March even as most other investment vehicles faltered. BDCs continued their comeback in April, posting average gains of about 7%. So, while these assets helped cushion the blow for many of you when the markets weakened, they continued to work well for you when the markets turned around, illustrating the value of having a strategically diversified portfolio.
The Right Perspective
As I often point out, it’s important to keep the right perspective when it comes to your monthly statement, whether your asset values are up or temporarily down. Remember that even during March’s downturn, while account values fluctuated on paper, your income remained steady. By design, your income did not change. Nor did it change this month when your values went up again on paper.
So, while it’s always better psychologically to see your values growing instead of shrinking, at the end of the day, it doesn’t really matter, which is exactly why you’re investing for income first, growth second to begin with. While everyone appreciates the up months, as income investors, you can also appreciate the down months because they are reminders that you no longer really need to stress about market volatility.
Even better, if you’re reinvesting all or part of your interest and dividend income, a down market means you are buying assets at a lower price and dollar-cost averaging your way to more potential growth and income in the future.
As always, if you have any questions about your portfolio or the markets, please don’t hesitate to contact our office at any time. We are always here to help.
Enjoy May, and I’ll touch base with you again in June if not sooner!
Sources:
1 https://www.cnbc.com/2026/04/29/stock-market-today-live-updates.html
2 https://www.cnbc.com/quotes/US10Y
May Recipe: Caesar Salad Smashed Potatoes
Ingredients:
- 1 ½ pounds baby potatoes
- ¾ cup grated Parmesan cheese, divided
- ¼ cup Caesar dressing, divided, plus more for serving
- Salt, to taste
- Chopped parsley or romaine, for garnish
Directions:
- Preheat the oven to 425 degrees. Boil baby potatoes in salted water until fork-tender, about 15 minutes. Drain and let cool slightly.
- Sprinkle ¼ cup Parmesan cheese all over a parchment-lined baking sheet.
- Arrange potatoes on top and gently smash with the bottom of a glass. Using half of the dressing, brush each potato and sprinkle on another ¼ cup Parmesan cheese.
- Bake until golden and crispy, 15–20 minutes.
- Remove potatoes from the oven, brush on remaining dressing, and sprinkle on remaining cheese.
- Serve with additional dressing for dipping. Garnish with chopped parsley or shredded romaine. Enjoy!
The Caesar Salad Smashed Potatoes: Caesar Salad Smashed Potatoes Recipe