Posted by parm Wednesday, April 23, 2014, 12:35PM ET
Read 90 times
The utility sector has been one of the best performing sectors of 2014. The XLU is up over 10% YTD and currently yields about 3.45%. Utilities are perceived to be a safe sector that does not reflect risk taking.
Now, let's compare the XLU to some of the growth areas or so called "risk" ETF's. SOCL is down over 10% YTD (down about 19% from its recent highs). IBB up just over 2% (down over 15% from its recent highs). QQQ down over 1% YTD (down just under 5% from its recent highs). IWM down over 0.5% YTD (down over 5% from its recent highs).
Based on those numbers it looks like money has been fleeing riskier names and flowing into the safety of a sector like XLU. If the markets are so great and healthy, then why are growth sectors lagging and safe sectors like XLU leading. Regardless of the answer, one thing is sure, this is a great time to be involved in the markets!
Come over to the ELITE ROUND TABLE and see what the PROS are trading!