From Contrarian Outlook: It used to be that finding a decent yield in the stock market was easy.
The Utilities SPDR ETF (NYSE:XLU) is in focus today, as the sector index fund continues to break out of a three-month consolidation range.
From Franklin Templeton Investments: US equities have generally been supercharged in the wake of the presidential election, but the utilities sector’s relative performance has dimmed instead.
Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at relentless large cap equities buying, notable inflows to foreign stocks, and some downside options bets in a popular utilities fund.
From Michael Foster: Utilities are a particularly enjoyable sector for income investors because they offer sustainable and growing dividends—if you choose the right companies.
From BlackRock: While most investors focus on potential returns in their portfolios, Russ Koesterich discusses why risk and correlation are just as important.
Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out some apparent hedging in utilities ETFs ahead of the beginning of the new month tomorrow.
From Contrarian Outlook: With the Trump bump squeezing stocks higher, retirees (and near-retirees) are asking me two questions a lot these days.
From Zacks: The fourth-quarter earnings season of the utility sector has been quite a disappointment with revenues from some major companies missing estimates and earnings meeting or lagging expectations.
From Michael Foster: Let’s say you want to lock in a passive retirement income of $80,000 per year. If you go with what most investors mistakenly see as the safest route, long-term US Treasuries, you’re going to need $3.3 million.
From Zacks: After witnessing a bullish run for the most part of 2016, the utility sector encountered a broad-based sell-off especially after Donald Trump won the election. The U.S. President-elect plans to increase economic stimulus, which is likely to push long-term interest rates higher.
From Moby Waller: Last January, the Dow Jones Industrial Average lost 8.1% in the first 10 trading days of the year. That was the worst performance to start a year ever, going back to 1897.
The recent sell-off in utility-focused ETFs accelerated this morning, as Donald Trump’s shocking election win spiked interest rates and sent the fixed income markets into a tailspin.
Analyst David Fabian points out that safehaven assets are beginning to sell off, which could mean trouble for the wider markets.
From Zacks: Utility companies are among the safest investment bets, but they have their share of weaknesses as well. Growing regulatory burden and increased debt loads remain concerns, but an even bigger issue is the interest rate backdrop.