Tuesday, January 08, 2008
Utilities look to entering a very favorable investment period.
As I stated at the end of December Utilities look to entering a very favorable investment period. First Utilities have a tendency to out perform durring periods of declining interest rates.Secondly even in a slowing economy consumers still have to have lights and heat also the regulated side of the business gives utilities a predictable income stream which in times of uncertainity is very desirable . Another interesting factor is the current upgarde cycle in the whole power generation industry ,weather it is investments in alternative energy or opertunities to expand traditional capacity thru conservation. Finaly all the uncertainty in the bond markets have income investors looking for a place to go .