The Dow Jones Utility Average has returned more than 10 percent since early December 2016, outperforming the S&P 500 by a few percentage points. It’s now reached valuations where the risk-reward balance skews to the downside. In this environment, investors should evaluate the macro forces that could bat these stocks about in coming months.
The final five Lifelong Income Portfolio members released their numbers, allowing us to gauge their health and dividend stability. Given the difficulty of revenue growth for many companies, it’s more important than ever to examine how costs and operations are being managed.
Incoming data reinforce our take that the US economy has strengthened. But technical warning signs and policy concerns mean investors who invest in specific stocks and not the broader market have a better chance of outperforming.
Results from the recent Dutch elections removed one engine of political uncertainty in the eurozone. Will this year's remaining European electoral calendar echo this outcome and release an economy ready to accelerate?
China is the stock market investors love to hate. The conversations are always about what could go wrong in China and rarely about what will go right. And yet Chinese equities outperformed other emerging markets during the past one-, three- and five-year periods.
The implications of the US economy moving into a period of stronger growth, faster inflation and rising rates shouldn’t be overlooked. And neither should the newest addition to the portfolio, an addition whose business goes from headwind to tailwind in this new environment.
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.