william the wie
Gold Member
- Nov 18, 2009
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Given the declared intent of the Fed to raise rates I think this is either a a false call or a call for a Sept.rate hike. Let me put this in perspective:
The DJU is the oldest utility index in the country, maybe the world.
The utility company with the best record for rising dividends and low leverage,WEC, has a PE just shy of 24. That is nosebleed territory for a utility company being 50% above the top of its normal range. In the June Value Line 600 the PE was 21.
When utilities are rising 7+% a week. that is a bad sign.
The DJU is the oldest utility index in the country, maybe the world.
The utility company with the best record for rising dividends and low leverage,WEC, has a PE just shy of 24. That is nosebleed territory for a utility company being 50% above the top of its normal range. In the June Value Line 600 the PE was 21.
When utilities are rising 7+% a week. that is a bad sign.
