FYI: More than most sectors, utility stocks have felt the sting of rising interest rates.
While the Standard & Poor’s 500 is up nearly 5% this year, the utilities in the index are down 4.5%, besting only the real estate group, which has lost 5%.
Still, utilities, which were yielding about 3.6% late last week, remain attractive to income investors. With rates so low, these stocks serve as bond proxies.
At a time of rising rates and strong economic growth, though, investors are more apt to move from the sector into riskier parts of the market. And higher bond yields pose competition.
Regards,
Ted
http://www.cetusnews.com/business/Don’t-Chase-High-Utility-Yields.B1tqTUeBf.html
Comments
Thank you for your inquiry.
Old_Skeet has many investment strategies at play within his well diverisfied portfolio.
Currently, the Compass Strategy (which I'm thinking you are referencing) is momentum based strategy found in the growth area of the portfolio and picks a spiff hound form the lead pack to invest in. I have a sleeve within the growth area that contains this strategy called ... the spiff sleeve ... where my special investment positions are found.
In other parts of the portfolio are where some value type strategies are found. The compass can be used as an aid in locating these (out of favor sectors) as well.
Many years ago, back in my Scouting days is where I learned of the value of a compass in finding my way. Today, I still use a compass (of sorts) in finding investing opportunity within the market. In addition, I learned that a two man canoe could make greater distant over a one man canoe. And, a three man canoe was even better. With this, this is why most of my investment sleeves have at least three members (some more). This is because when one becomes tired and begins to falter then there are the other two (or more in some cases) that can offer suppport and continue to propel the sleeve.
Were you a Scout?
In any case, I can tell you have fun with investing. It's just, at times to the reader, it all looks like a complicated all encompassing index. I think over time though you might make it all work.
Cub scout, but no further.
https://www.forbes.com/sites/greatspeculations/2018/01/11/utility-stocks-and-tax-reform-what-investors-need-to-know/#31c75d554d82
Regards,
Ted
I never had that kind of problem in a canoe (that you have described) with other scouts that I remember. My experience was that scouts work as a team ... and, if we had a straggler we'd off load some of his pack and carry it for him.
Perhaps, your experience was different than mine.
Simply stated ... The goal is to propel the sleeve and sometimes the sleeve has to be reconfigured in order to accomplish the goals. Indeed, it seems you might need to recruit a new canoe crew if they continue to falter as a team. Perhaps, a new team leader might be the first step.
As a long time utility player with CMS, I still like them a whole bunch. When searching for decent dividend yielding stocks, I start with companies that I do business with. Here in Michigan, DTE and CMS are the two big dogs and we send a check every month to the latter. The yield of 3% helps ease the pain. As for DTE, it's yielding 3.4%.
As for the telecom's, geez, wifey is baby bell mgt retiree. duh.
Just sold some T before Christmas for the tax loss AND the war they are in with the DOJ. Bought some VZ to replace it. After the wash rule expires, I'll add some T back. Yield is wonderful and we're customers.
"widows, orphans and rono's"
and so it goes,
peace,
rono
I know you won't accept any of what I said, so I'll leave it at that.
There are many multi strategy funds that work as a team. An example of this would be a fund-of-funds. Take American Fund's Growth & Income Portfolio Fund (GAIOX). It is a Morningstar four star fund that is comprised of six American Funds all with different mandates and strategies; but, under this wrapper they are blended together and become a team.
So, with the above being stated it looks a though I have a different perspective on the team concept than perhaps you do. However, these different perspectives when blended together is what makes a portfolio. I'm thinking that if you check your own portfolio it Is comprised of a good number of funds. Seems, they vary in mandates and strategies; but, within your own portfolio they become a team of sorts.
I know many of us see things in different light and perspectives. But, the above pretty much implies my meaning of coming together and working as a team.
FWIW ...
Old_Skeet
I made some notes but did not put names on them. It could indeed be yours. So, I'll just modify the post and remove the funds but the message remains. If my memory is correct you earned the rank of Eagle in Scouting?