Unless we see 1 to 5 year bonds and CD's pay above 3.5%, XLU is a good place to reside. This is a good long term investment. Dividend and earnings creep upward, on a yearly basis.
utilities HAVE BEEN a good place to reside.
their recent returns HAVE BEEN 5 to 6 times what would normally be expected on a risk adjusted basis.
quite likely that some holders will take profits here.
thus, can't agree that utes are a good place to reside right now.
maybe in a few months time.
action today suggests that the sell-off in utes is beginning. given the recent gains, could get a little ugly on the downside.
I am short the utilities (fulll disclosure).
Not a recommendation.
Do your own due diligence.
Good luck to all .
XLU looks very risky, now at over extended Y2000 peak valuations. Good luck and best wishes:)