DUKE, PPL FE, POM all falling from highs. Shorts might want to make this to be an EXC event but sector is suffering. DOW is down from its recent high, with the election over its back to reality, Greece, Euro Debt, Fiscal Cliff, Japans new recession...... Yep still plenty of big problems.
While people have flocked to UTE's for yield due to uncertainty, it mayhave been a bad move. Protect you principle, taxes are going to 43-44%, meaning the largest holders of UTE's, mutual funds will get hit with the higher taxes, hence they will sell. Another factor, earnings are expected to decline over the next half decade. The 164% tax hike increase will likely result in very significant share price declines to return yields to their after-tax equilibrium levels.
Obama was voted back in,div.and cap gain taxes going up,health care cost shooting up and you have to buy.Many middle class investors own utility stocks and down they go-many in this Country don`t think.