Premium Values in Utilities Show Risk If Interest Rates Rise

#infrastructure … paying attention?

24/7 Wall St.

137592441With both the S&P 500 and the Dow Jones Industrial Average hitting new all-time highs this week, investors have to wonder how they should be positioning themselves for the rest of the year. Earnings season has also started to wind down. The long and short is that investors still want upside while not buying the top tick. And now many of the utility stocks have hit new highs and investors have to be wondering what to do here.

We have been looking for value stocks as investors have started to look for cover in the markets where they can still have equity exposure but try to get some protection compared to the broad market. The utilities sector is more than interesting because investors have bought them endlessly higher for income, almost as if these were the new bonds and certificates of deposit (CDs).

24/7 Wall St. screened the largest utilities…

View original post 1,024 more words


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s