The market is warming up to super investor Bill Gross' recommendation to buy utility stocks.
Last month, Gross recommended buying shares in regulated utilities that deal in basic stuff like electricity generation and municipal water supplies. Utilities are stable, recession-resistant businesses... and they're famous for paying dividends. Today's chart shows investors are taking Gross' advice. The big utility stock fund (XLU) just "broke out" to a new 52-week high.
Our point today isn't "Bill Gross is right." There's a much bigger trend at work here: The rallies in utilities... and gold... and silver stocks... and agriculture... and Visa are being driven by a global rush out of the dollar.
Sure, these assets "have something going for them" in a fundamental sense. But the major factor here is the federal government's reckless E-Z-Credit and money-printing program. It's driving folks to stick their wealth into anything but the junk paper dollar.
Well done, Ben Bernanke. Well done, Barack Obama. You're making speculators out of the widows and orphans of America. They will end up losing big in a game dominated by the lobbying geniuses of Goldman Sachs. You should be ashamed of yourselves.
Last month, Gross recommended buying shares in regulated utilities that deal in basic stuff like electricity generation and municipal water supplies. Utilities are stable, recession-resistant businesses... and they're famous for paying dividends. Today's chart shows investors are taking Gross' advice. The big utility stock fund (XLU) just "broke out" to a new 52-week high.
Our point today isn't "Bill Gross is right." There's a much bigger trend at work here: The rallies in utilities... and gold... and silver stocks... and agriculture... and Visa are being driven by a global rush out of the dollar.
Sure, these assets "have something going for them" in a fundamental sense. But the major factor here is the federal government's reckless E-Z-Credit and money-printing program. It's driving folks to stick their wealth into anything but the junk paper dollar.
Well done, Ben Bernanke. Well done, Barack Obama. You're making speculators out of the widows and orphans of America. They will end up losing big in a game dominated by the lobbying geniuses of Goldman Sachs. You should be ashamed of yourselves.
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