During the 2008 meltdown, only two of a 150-plus electricity, gas, water, telephone and pipeline utilities cut dividends. And their problem wasn’t the ultra-reliable essential-service business but unregulated financial instruments that got caught up in the banking system meltdown. That record should be enough to convince anyone to own some of these companies. Nothing will hold its own better in a “what if” nightmare scenario for the overall markets.
The idea isn’t to have all of your money in investments that benefit from faster inflation, or investments that benefit from less inflation. Rather, a balanced mix will hold you steady as violent events take shape. And as long as you own quality companies, the lesson of 2008 is you will eventually build wealth, even as you garner high income.
Source: Investing Daily
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