Have Utilities Peak?

DYI:  Utility stocks have been a favorite investment for conservative and aggressive investor alike.  Since interest rates top out way back in 1981 enlighten investors bought utilities for their income or capital gains.  In the end both types of investor had the best of both worlds!  Of course that was then this is now.  Despite the big drop in yields the Dow Jones Utility index is down 20.2% from one year ago.  Notice how utilities are only lagging gold since the year 2000 the beginning of our valuations based secular bear market?  Are we seeing the top for utilities?  An investor must always be on guard not to overstay a winning trade.     

Till Next Time

4-1-20
Updated Monthly

Secular Market Top - Since January 2000

+  88.2% Dow       

+158.6% Transports 

+167.8% Utilities

+ 73.0%  S&P 500

+ 84.4%  Nasdaq

+ 79.5%  30yr Treasury Bond

+461.1% Gold

  - 16.0% Oil
  +66.0% Swiss Franc's

    

From High to Low - Since Year 2000

+461.1% Gold

+167.8% Utilities

+158.6% Transports

+  88.2% Dow
+  84.4% Nasdaq
+  73.0% S&P 500
+  79.5% 30yr Treasury Bonds

+  66.0% Swiss Franc's

-   16.0% Oil 

December 1999 Shiller PE10 was 44.19               
August 2000 S&P 500 dividend yield was 1.11%  

Shiller PE10 4-1-20 is 24.40
S&P 500 dividend yield 4-1-20 is 2.32%
[Shiller PE10 & dividend yield is reported using data from the beginning of the month when I update.  It may or may not exactly be the first trading day of the month.]

It is easily seen in the year 2000 the Nasdaq was horribly overvalued and gold was on the give away table, such lopsided returns 19 years later!

DYI