The one benefit of a Trump-Pence administration is their desire to get rid of onerous EPA regulations. Prior to the elections, utility stocks outperformed all others because of their high yields, inverse beta, and due to its traditional safe haven status.
Other defensive sectors that shared in that glory, pre election, were gold, bonds, REITs and high yielding old man stocks. Well, all of those have been beaten like a piñata since the election, but suprinsingly the utes have done fantastic.
Year to date, water utilities are up a staggering 38%.
This is the performance chart of the entire utility sector over multiple time periods, all green.
And here are the water utilities, up 9% over the past month.
The idea that Trump will save the utilities billions in reduced EPA regulations might be a bit overzealous, considering the fact that he isn’t even in office yet. Clearly, Wall Street is making a bet. It’s worthwhile to note, the utes are likely the preferred destination for bearish investors now, replacing bonds — which have been tossed to the side ever since the inflation narrative and blowing out GDP growth has been pushed.
XLU is the most actively traded ute and UPW is leveraged.
If you enjoy the content at iBankCoin, please follow us on Twitter
Comments come to a trickle on market subjects. Let’s discuss Trump cucks, alt right queers, Russian hacking and pizza faces.
pizzafags
Good point. You bitches complain about lack of finance, but notice how those same cuckolds never comment on finance related posts?
I feed trolls for a living.
This is the nature of the Internets. It’s mostly troll food.
lol
Won’t have to see r _ _ _ _ d h _ _ h headlines much longer, f _ _ _ _ _ _ a _ _ _ _ _ _
controllers you can’t get many more now
I think EPA’s “heart” is in the right place. The problem is lack of common sense and perspective. This happens often when intellect is contained by the world inside the Washington Beltway.
I hope we don’t get black air and all have to wear masks like some people in China have to, because Trump squashes the EPA.
Okay Frog, you always point out everybody’s exaggeration. Don’t you start exaggerating, that’s beside you… right?