- Following a top-down investment approach, we first check the market at a sector level to see the forest and then check a few leading stocks to see the trees.
- What we see is that now is the worst time to buy the utility sector (represented by UTF), especially its leading component Duke Energy.
- Among all market sectors, utility is the most expensively valued sector relative to risk-free rates, and its leading stock Duke Energy even more so.
- Compared to Duke Energy, UTF features a relatively lower risk premium, better diversification, a proven management team, and higher current dividends for better support.
For further details see:
UTF Vs. Duke Energy: If You Must Buy Utilities, Buy UTF