Take your pick of the S&P 500, Dow Jones Utility Average, or any other sector index and the chart tells the same tale: Stocks’ rebound from late March lows has reached a level that in all previous bear markets has signaled rally’s end.
It’s always possible things will be different this time around. The fact that a pandemic caused the drop is unique in the post-World War II period. Governments are flooding the world with stimulus to lessen economic pain. And the Federal Reserve’s liquidity push has stabilized the bond market, at least for now.
Unfortunately, COVID-19 is still far from tamed. And it’s clear from my analysis of the nearly 200 essential services companies in our Utility Report Card coverage universe that even very stable businesses can’t forecast eventual fallout.
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Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.