The Dow Jones Industrial Average hit its tenth record closing high of the year — and fifth in a row — while the S&P 500 ventured into uncharted territory when it hit new highs on June 5 that were above its record close. Looks like records were made to be broken.
It will seemingly take a lot to break the current rally, as the market only bent under the weight of political unrest in Iraq and the resulting higher oil prices yesterday. And stocks also largely shook off the disappointment of weaker-than-expected May retail sales.
But even with the market continuing to hit new highs, I believe there are still plenty of buying opportunities just waiting to be scooped up in the midst of any weakness. And some of the best opportunities out there are in the utility sector.
We’ve seen a lot of sector rotation amid the market volatility, as investors run to “safer” names that offer some downside protection. One industry that benefits from this is utilities, which are generally known for its defensive characteristics because their businesses will be necessary no matter the economic climate.
I have four picks in this space that I want to share with you now that offer solid fundamentals and attractive valuations. Let’s take a closer look: