2024-05-23 03:16:42 ET
Summary
- There are two sets of stories driving Utilities Select Sector SPDR Fund ETF's rally.
- One involves the potential for interest rates to fall.
- The other involves the soaring demand for electric power due to AI, factory automation, electric vehicles, etc.
- I don’t believe in either story.
- I may be early here, but I think the safer course is to Sell XLU.
A lot has changed since I started as a junior securities analyst at Value Line at the end of 1979.
I don't need to recite the full litany of changes. It's too obvious. But there is one point worth noting now.
Utilities stocks have come a long way.
I and other Value Line rookies hid and/or prayed when Associate Research Director LK was assigning utility stocks for coverage.
These were beyond boring.
WM, a senior analyst who, for whatever reason, chose to be the primary utility analyst told us "Anybody who could draw a line using a straight edge (ruler) can forecast utilities." (There were no personal computers. We drew "basic charts" by hand.)...
Read the full article on Seeking Alpha
For further details see:
Not Impressed By Either Of The Stories That Have Been Powering XLU