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Strategies & Market Trends : LastShadow's Position Trading

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To: Dave Shares who wrote (1101)10/10/1998 10:08:00 AM
From: Wallace Rivers  Read Replies (1) of 43080
 
But David,
If you look at the yields on a lot of utilities now, they don't fetch the yield of the 30, because they have run up so much.
Examples:
DPL 4.6%
DTE 4.2%
DUK 3.1%
CIN 4.7%
FPC 4.6%
With the 30 year at 5.1%, and the 10 year, I would guess, at comparables to these utilities, I don't know why these utilities should be viewed as safe havens, especially if the bond continues to back up.
I also don't feel the utes are totally immune from an economic downturn. They service large industrial concerns, as well as Joe and Jane Doe turning up their thermometers.
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