The Surprising Link Between Utility Stocks and Interest Rates скачать в хорошем качестве

The Surprising Link Between Utility Stocks and Interest Rates

XLU was down 5.5% at the close of trading on monday the 2nd of October, 2023. There is only one explanation. Which is the link between interest and utilities stocks, that some people are unaware of. Utility sector funds are somewhat of an alternative to treasuries and CD's. The reason for this is due to the characteristics of the utility sector. Don't forget to subscribe for more financial insights! 1. Low risk - compared to the rest of the market. Everyone needs heat and electricity even in a market downturn. 2. Stable Income from Dividends 3. High dividend - typically between 3-3.5%. 4. Bonus - keeps up well with inflation, which most fixed income products do not do as well. So when the investors are deciding which assets to invest in, they have to compare how much treasuries are paying compared to high dividend utilities companies. And in the end that relationship can dramatically affect the stock price for those utility companies. 0:00 - Intro 0:26 - Utility Sector characteristics 2:40 - Alternative to Treasuries 4:17 - Asset Correlations 6:38 - XLU price fluctuations example #investing #stocks #stockmarket All content on Youtube is for informational and educational purposes only, and should not be taken as financial advice. This information may be outdated or inaccurate and it is your responsibility to verify all information yourself. Marlin Financial Advisors can not be held liable for any misuse of this content. If you are a State of Michigan resident and would like personal financial advice, check out our website at Marlinfinancialadvisors.com.