Reminder: Boring Utilities Are Crushing the S&P Over Multiple Time Frames

Say you were an old man, or risk averse. Instead of gambling in the tech space, filled with faggots and caitiffs, you bought an old school electric utility, yielding 4.5%, trading at a discount to the market 5 years ago. Considering the run the market has been on, I’d venture off the believe, if afforded the opportunity to gander, that the SPY would’ve crushed the old man — discarded his wheeled chair, and smoked his pipe for him.

Contrary to what you might otherwise believe, the exact opposite is true.

Mumra is up in this bitch. pic.twitter.com/677ORuqOxe

— The_Real_Fly (@The_Real_Fly) August 25, 2017

Anyway you splice it, the utilities have crushed the SPY, going back at least 5 years.

The biggest in the electric space is DUK, sporting a $60 billion market cap — yielding 4.11% — is up 14.2% for the year, excluding dividends.

Amongst diversified utilities, PCG is the biggest — yielding 3.06% — up 16.6% for the year.

If stock picking isn’t your thing, there are ETF alternatives.

XLU yields 3.1% and is up 15% this year. Another interesting play is JXI, which provides global exposure in the utility sector, providing investors an opportunity to invest parasitically on a worldwide scale.

Frankly, there are a half dozen ways I can attempt to describe the reason for the outperformance. But I think the best reason is we’re in the midst of an investable renaissance where everything works. The avoidable sectors are easily telegraphed and the winners continue to win, in a staid and mechanized fashion.

One day we’ll long for these days, a period in time when even idiots were able to invest their way out of the Third Estate and into the canaille. I, however, endeavor to preside over the destruction of capital markets — positioning myself in a way to act in a manner that is wholly and completely vampirish. Until that day beckons, Exodus will keep me invested, as it deems fit, participating in this ‘tape’, broadly diversified and systematically supreme.