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Wouldn't utilities (famous for their large dividend distributions) get creamed in a rising interest rate environment?
by abraxas 4y ago
Wouldn't utilities (famous for their large dividend distributions) get creamed in a rising interest rate environment?
- toomuchtodo 4y agoElectricity and gas are typically non discretionary spending.
- abraxas 4y agoNo question but utilities' distributions have to compete with higher treasury yields so that would be pushing downwards pressure on their prices. Actually in a tight money environment I don't really think there is a place to hide. Bonds and stocks are both likely to decline across the board. Cash and gold might be the best refuge.