It paid to heed the many mid-year warnings of bubbly utility sector valuations. After a 9.5%...

It paid to heed the many mid-year warnings of bubbly utility sector valuations. After a 9.5% decline since the beginning of August, the XLU will finish the year down more than 4%, totally offsetting its yield. The sector's overvaluation left it exposed to any sort of bad news, and it got it with Sandy and the post-election realization of maybe higher dividend tax rates.
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Comments (3)
  • Joe2922
    , contributor
    Comments (477) | Send Message
    31 Dec 2012, 07:49 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3766) | Send Message
    Of the major market subsectors (XLB,XLE,etc), XLU is the only one which is down year-to-year as of last Friday (XLE is close to being down,up only .97%).


    The strongest sector has been XLF year-over-year. Therefore I've been selling off my profits in XLF and putting the money into XLU.


    If we all go over the cliff in the next few days I think that move will prove to have been a good one. we'll see.
    31 Dec 2012, 07:49 AM Reply Like
  • tr4head
    , contributor
    Comments (316) | Send Message
    People sold because they were told to get into risky investments. They were right to stay in and will be rewarded this year as US equities get slammed back to valuations matching economic malaise and continued lower than low interest rates. The only real money to be made in 13 will be in Emerging Markets equities and EM Bonds.


    Don't listen to Wall Street - they will do anything they can to keep you and your investable money in the Dow and Euro land.
    31 Dec 2012, 09:38 AM Reply Like
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