The seasonality of the utility sector could be profitable

This chart shows the seasonality pattern of the utility sector. (click on the chart to enlarge it).

The chart shows utilities do not lose value during the summer months from a seasonal pattern viewpoint. This is an interesting pattern given the seasonality of the overall stock market. Why?

Because  the stocks market does not perform well during the summer months (if the historical pattern persists). The utility sector on the other hand provides a way to hedge the weakness of the overall market.

Of course, this is true if the historical patterns take place also this year. Following indicators to guide you in the allocation of your capital becomes an essential tool to complement seasonality strategies.

George Dagnino, PhD
The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months. 

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Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses. 

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