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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (37067)3/26/2010 10:04:00 AM
From: Grommit  Read Replies (4) of 78680
 
Utility as damper. "I'm using UTILITY stocks for a defensive play, trying to keep some volatility down in my portfolio." Conventional wisdom says "yes", but I am not sure that it is as effective as we think that it should be. NYSE vs two typical utilities:

finance.yahoo.com^NYA&l=on&z=m&q=l&c=fpl%2Cede

I recently bought EDE (EKS recommendation). And I just bought PEG, a utility paying 4.6% with a PE < 10. And my wife's name.
Sold a little bit of GOV.

finance.yahoo.com

my portfolio:

mix yield
cash 2% 0.0%
util 8% 5.6%
pref 54% 8.3%
reit 25% 5.9%
other 10% 3.0%
100% 6.9%
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