(Check out Carter’s worthcharting.com for actionable recommendations and live nightly videos.) Utilities, as all will know, generally lag the market over time. See first chart below. On a total return basis, however (with dividends reinvested) utilities – with their higher yields – have matched the performance of the market the past 25 years. See second chart below. And here and now, utilities as a group are just now breaking out to new 52-week highs and all-time highs. We think it is right to be overweight utilities at this juncture. Since the Dotcom Bubble peak in March of 2000 to present, the S & P 500 Index almost doubled the performance of the S & P 500 Utilities sector. Since the peak in March of 2000 to present, the S & P 500 Utilities sector’s total return (dividends reinvested) has matched the S & P 500 Index total return (dividends reinvested). 25 years has equaled even money. Utilities just now are moving above their former highs registered in November of last year. The tentative breakout underway is judged to have room to run. Buy here for a prospective move to the $88+/- level. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
