Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Dow Jones Utilities Index

The Dow Jones Utilities Index is a collection of utility stocks. Most of the Dow Jones Utilities Index is built on electricity generation, as that is a key part of a modern economy. Many investors in stocks contained within the Dow Jones Utilities Index are looking to obtain a dividend yield, since most of the firms are not fast-growing firms.

Utility Stocks: Their Hidden Message

By for Profit Confidential

“When in doubt, look at the charts.”

The above has been my motto for years. I believe that stocks and the stock market are leading indicators. They tell us what is going to happen with specific industries, various prices and the economy six to 12 months out.

One chart I have been studying closely this year is the Dow Jones Utilities Index. Utility stocks traditionally rise when interest rates fall and investors can get better yields off of secure utility stocks than they can get from CDs or T-bills. Similarly, when interest rates rise, utility stocks fall, as investors flee them to the rising yields of CDs, T-bills and bonds.

You Won’t Like What Utility Stocks
Say about Rates

By for Profit Confidential

What’s with utility stocks and why should investors care?

Watching the price action of the utility stocks is very important to investors, as the utility stocks are leading indicators of interest rates. By watching the price action of these stocks, we can relate their price direction to where we expect interest rates to go.

The Great Crash of 2014

A stock market crash bigger than what happened in 2008 and early 2009 is headed our way.

In fact, we are predicting this crash will be even more devastating than the 1929 crash…

…the ramifications of which will hit the economy and Americans deeper than anything we’ve ever seen.

Our 27-year-old research firm feels so strongly about this, we’ve just produced a video to warn investors called, “The Great Crash of 2014.”

In case you are not familiar with our research work on the stock market:

In late 2001, in the aftermath of 9/11, we told our clients to buy small-cap stocks. They rose about 100% after we made that call.

We were one of the first major advisors to turn bullish on gold.

Throughout 2002, we urged our readers to buy gold stocks; many of which doubled and even tripled in price.

In November of 2007, we started begging our customers to get out of the stock market. Shortly afterwards, it was widely recognized that October 2007 was the top for stocks.

We correctly predicted the crash in the stock market of 2008 and early 2009.

And in March of 2009, we started telling our readers to jump into small caps. The Russell 2000 gained about 175% from when we made that call in 2009 to today.

Many investors will find our next prediction hard to believe until they see all the proof we have to back it up.

Even if you don’t own stocks, what’s about to happen will affect you!

I urge you to be among the first to get our next major prediction.
See it here now in this just-released alarming video.

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