The S&P 500 Utilities Index has tumbled in the wake of the 2016 election, as the conventional wisdom holds that the results were bad for utility stocks.
Rising interest rates and the prospect of improved economic growth if the Trump administration delivers on its promised fiscal stimulus have given portfolio managers an excuse to rotate out of utility stocks and into cyclical fare. Unsustainably high valuations made this decision all the easier.
Conrad’s Utility Investor subscribers who followed our lead over the summer and took partial profits on their big winners and added exposure to ProShares UltraShort Utilities (NYSE: SDP) should be doing reasonably well, all things considered.
This exchange-traded fund, which delivers two times the Dow Jones US Utilities Index’s inverse daily performance, has rallied by about 25 percent—and we see the potential for more upside.
However, the most important point to take away from this issue of Conrad’s Utility Investor is that the underlying business conditions for our favorite utilities haven’t changed. The sector remains in excellent financial shape and has its best growth prospects in decades. Unfortunately, valuations remain frothy.
Election 2016 has created far more opportunity than risks for best-in-class utilities. But potential regulatory tailwinds are only one of the many factors that will drive returns going forward.
AT&T follows Comcast Corp’s example with a bold move into the content side of the business. Here’s our take on the deal and third-quarter earnings from some of our core Portfolio holdings.
We add three bonds to our basket of fixed-income securities.
We delve into some the recent trends in mergers and acquisitions involving master limited partnerships and other midstream operators.
Utility stocks continue to trade at elevated valuations. We revisit our investment strategy for this environment.
What does the utility sector’s budding relationship with big tech mean for investors?
The Edison Electric Institute's annual financial conference takes place this week. Here's a quick preview of some of the themes we'll dig into at this year's event.
The upcoming gubernatorial elections could have important implications for utilities in these states.
Critics who dismiss utilities as dinosaurs doomed for extinction aren’t paying attention to the forward-looking moves made by Edison International and some of its peers.
While the market fixates on whether the Federal Reserve will hike rates, too many income-seeking investors ignore the danger lurking in their portfolios.
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Harness the tried and true wealth-building power of rising dividends.
Nothing compounds wealth like reinvesting a rising stream of dividends.
Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.