Plug Your Portfolio Into These Utility Stocks Before It’s Too Late!

Investors are falling over themselves to get a piece of the market, rallying the major indices by historic proportions over the past two days. While we’re on board with picking up some bargains on the volatility, we’re also looking at the rally with some skepticism. But before the market took its hard turn lower, one sector was presenting a low volatility “buy” signal that we’re still acting on, utility stocks. Investors started throwing utility stocks away last year on fears that interest rate hikes would affect their attractiveness to yield investors. Shares of the Utilities SPDR ETF (XLU) hit a low at the end of June as investors overcorrected while the rest of the market was trying to break out of its six-month range.

The sector posted a 10% stealth rally in July and August as the rest of the market went the other way. Now, after less than a week of selling, utility stocks are in position to rally another 10% over the short run, with another potential 10% to follow as investors adjust to the possibility that interest rates may remain contained for longer than anticipated. Here are the best ways to play the upcoming rally in utility stocks. Utility Stocks to Buy: Utilities SPDR ETF (XLU), Southern Company (SO) and Consolidated Edison (ED).

Source: InvestorPlace

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