Written by Sam Kovacs
Introduction
Over the course of the past 12 months utilities have soared. In the process some have become overvalued. Investors who own many utilities need to take a close look at their positions, and consider whether they can use recent price movements to their benefit.
Source: Open Domain
While I wouldn’t suggest that investors reduce their exposure to utilities, I would suggest investors move out of overvalued positions and into relatively undervalued positions.
Doing so can significantly increase your income, even if you have to pay capital gains tax.
California Water