When interest rates rally sharply, the Dividend Aristocrats (NOBL) tend to outperform. Companies with an ability to increase their dividends for twenty-five consecutive years have defensive attributes that markets favor in the risk-off environments that send Treasury bonds rallying sharply. These more fixed income-like characteristics tend to lead to market outperformance in down markets. After all, the Dividend Aristocrats have outperformed the broader S&P 500 (SPY) in each of the six negative years for the broad market - 2018, 2008, 2000-2002, and 1990.
In January 2020, the 10-year Treasury yield fell