Roger S. Conrad

It’s been roughly six weeks since the Dow Jones Utility Average’s most recent all-time high. At one point, 25 Conrad’s Utility Investor Portfolio stocks traded below their designated “Dream Buy” prices. The buying opportunity we saw last month for these best- in-class companies is a powerful testament to the value of portfolio discipline and patience. 

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.

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.

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.

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.

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.

Wall Street thrives and relies on numbers. Anything that’s measurable and helps forecast investment value is eventually used in formulas and algorithms.

COVID-19’s global spread, however, has confronted stock market analysts with a unique challenge. The virus’ unique characteristics—especially the 14-day incubation period—have made it problematic for medical professionals to accurately forecast and adequately prepare for.