When people think about trading or any other type of investment strategy, the last thing they tend to think of are utility stocks.
They’re just not that flashy or sexy, so they don’t get as much TV time.
I mean, they typically don’t have great stories associated with them. Utilities experience less volatility than the overall stock market most of the time, and they aren’t exactly known for being high-flying tickers — like FAANG stocks or big tech names.
But even in a bad economy, we still need utilities.
So today, I’ll show the best utility stocks to trade now… And why they just might deserve a spot in your portfolio over names that thrive on consumer spending, which will see their revenue plummet when spending is down.
Before we dive into the best utility stocks to trade, there are a few things that make them different from most publicly traded companies.
The first is that utility companies aren’t subject to large-scale competitors. In other words, the expense required for infrastructure is huge and not something a small startup can support on a bootstrap budget.
The second is that they tend to stay stable and even rise during bearish market cycles and corrective pressure.
And if you just so happen to check out any hedge fund’s portfolio, it’s likely that you’ll see some degree of utility stocks to anchor them away from extreme volatility and offer some diversification.
The last thing we want to do is put all our eggs in one basket!
If we did, we might outperform all of our peers. But we will experience excessive volatility, which isn’t something most investors can stomach.
So with that said, check out my short video below and let’s talk about the three best utility stocks to trade. They’ll give your portfolio some degree of stability, and because they’re all driven by momentum right now, they’ll give you the chance to grab some big gains.
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