From shuttered schools and cancelled events to disrupted supply chains, it looks like COVID-19—the coronavirus—is only starting to wreak havoc on the global economy. The big questions for investors: Where will the blows hit hardest and what if anything will be spared.
The market’s wild recent action is basically from bets being placed on the answers. So far, US Treasury bonds are in the winners’ circle. The yield on 10-year notes slipped to just 66 basis points at one time last week.
It’s still early days for US COVID-19 fallout. And most electric companies have yet to issue guidance. But so far, the US power industry is showing typical resilience in tough times.
That means future selloffs in the ongoing bear market are buying opportunities for best in class electric utilities, not a reason to sell.
I typically update advice in the Conrad’s Utility Investor website tables with the regular monthly issues. For urgent advice I send Alerts. If there’s a theme to expand on, I post an Income Insights or Utility Roundup.
These “interesting times,” however, require an update for the five tables under the Portfolios tab.
Economic uncertainty resulting from COVID-19 has shifted utilities’ momentum from positive to negative. And it’s clear we know little now about the ultimate damage to human health and economic growth. But big and sudden declines like this one have historically been followed by mighty rebounds, and huge rewards for those who’ve had the cash and fortitude to buy the right stocks at the bottom.
Utility stocks have picked up in 2020 where they left off in 2019. The Dow Jones Utility Average reached an all-time high of 934 this week. So long as investors crave yield, there’s a case the sector will reach higher ground - but this story also has a less savory side.
About year ago, we pounded the table to buy selected high yield bonds. Since then, each of our recommendations has scored solid capital gains, while providing yields as high as 10 percent.
Around the world, people are staying home to combat the deadly spread of COVID-19. That’s catastrophic for certain industries but, as always in capitalism, there are also winners.
Earlier this month, the buyout of the former Pattern Energy appeared headed for failure. But then came the COVID-19 market crash, and everything changed.
Despite the indiscriminate selling of the past few days, these two companies are well-positioned to weather this latest phase of the midstream stress test. Here's why.
Coronavirus (COVID-19) isn’t finished inflicting pain and suffering, particularly on China, and the global economic cost is only beginning to be felt. But one Chinese industry seems to still be moving full-steam ahead.
Cable companies still enjoy success in the B2B market. But these results raise a critical question for the rest of US communications: Who are they taking commercial customers from?
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Roger's current take and vital statistics on more than 200 essential-services stocks.