Rates up, utilities up? Its not supposed to work that way. XLU, IDU and UTH were all a little higher as were the individual names I am involved with, writes Roger Nusbaum.
What to make of demand for this group as rates move up? I could be wrong but I take that as a lack of confidence in growthier equities. The market does not necessarily need confidence but if my thought holds any water, this action might indicate the market is in control of weak holders. Conclusion? You may be tempted to add beta but don't go overboard.