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05-18
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Why Utilities Are Lighting Up the Stock Market
Heidern
2021-05-05
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These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.That has introduced a new risk to an old bet on safety. Investors looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.This spring, \"AI caught the market by storm,\" says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity Select Utilities mutual fund. \"It became recognized more broadly among generalist investors that utilities have become a play on AI.\". And just like that, as if someone had flipped a switch, the spotlight wa","content":"<html><head></head><body><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/cbd2643142dc33e33e9e2d897efc1ad1\" alt=\"ILLUSTRATION: ALEX NABAUM\" title=\"ILLUSTRATION: ALEX NABAUM\" tg-width=\"700\" tg-height=\"466\"/><span>ILLUSTRATION: ALEX NABAUM</span></p><p>The stock market's tortoises just got hare-y.</p><p>Electric-utility stocks have long been considered the ultimate in stodgy, slow-but-steady investments -- appealing strongly to people who value income and long-term safety above growth and quick gains.</p><p>In the past few months, though, utilities have left the rest of the market in the dust. These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.</p><p>That has introduced a new risk to an old bet on safety. <a href=\"https://laohu8.com/S/ISBC\">Investors</a> looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.</p><p>This spring, "AI caught the market by storm," says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity <a href=\"https://laohu8.com/S/SLCT\">Select</a> Utilities mutual fund. "It became recognized more broadly among generalist investors that utilities have become a play on AI."</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4f395cd891df8ee54784a9995d9b457e\" tg-width=\"482\" tg-height=\"619\"/></p><p>And just like that, as if someone had flipped a switch, the spotlight was on and these stocks got hot.</p><p>As Bespoke Investment Group, a research firm, pointed out this week, three of this year's five best-performing stocks in the S&P 500 are utilities: Vistra, <a href=\"https://laohu8.com/S/STZ.B\">Constellation</a> Energy and NRG Energy. Vistra, up 143%, has even outperformed the king of AI itself, Nvidia; <a href=\"https://laohu8.com/S/STZ\">Constellation</a>, up 85%, is barely behind it.</p><p>For utility investors, this is like night and day.</p><p>Last year was a total blackout. The Dow Jones Utility Index lost 7.2%, while the S&P 500 gained 26.3%; both figures include dividends. That was the worst annual underperformance by utilities since 1999.</p><p>Higher interest rates were part of the problem. Rising yields not only increased borrowing costs for utilities, but made their shares less attractive relative to bonds.</p><p>And 2023 wasn't the only recent off year. The spectacular implosion of PG&E in 2017 and 2018 had investors worrying that power companies face growing risks in a warming world.</p><p>Utilities inched up only an average of 6.6% annually over the five years ended last Dec. 31; the S&P 500 gained 15.7% annually.</p><p>The business of providing electricity hasn't grown in the past couple of decades as conservation and more-efficient technology have reduced consumption. The U.S. generated slightly less electricity in 2021 than it had in 2007, according to the federal Energy <a href=\"https://laohu8.com/S/III\">Information</a> Administration -- even though the economy grew more than 3% annually over that period.</p><p>Now, however, the need for energy is finally expanding. On their April 23 earnings-announcement call, executives at <a href=\"https://laohu8.com/S/NEE\">NextEra</a> estimated that electricity demand from data centers alone would grow 15% a year through the end of the decade.</p><p>AI isn't the only reason utilities have heated up so fast. The rapid increase in demand for electricity nationwide comes from three main sources, says Maria Pope, CEO of <a href=\"https://laohu8.com/S/POR\">Portland General</a> Electric, Oregon's biggest utility.</p><p>One is the revival of domestic manufacturing after decades of moving offshore. Another is the boom in semiconductor production, boosted by government support. But the expansion of data centers, "driven by the insatiable appetite of AI," is the fastest-growing source of industrial demand, says Pope.</p><p>Jay Rhame, chief executive of Reaves Asset Management, which manages about $3 billion in utility stocks, thinks the only historical parallel is the boom in electricity generation that followed the widespread adoption of air conditioning in the 1960s and 1970s.</p><p>Utilities are suddenly so hot that they're affecting the performance of funds in broader segments of the market. Look at two exchange-traded funds that specialize in income-producing stocks: <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Select Dividend and iShares Core High Dividend. Over the past three months, Core High Dividend is up 7.2%, slightly more than the S&P 500; Select Dividend, meanwhile, has gained 9.6%, outperforming the broad market by 3.2 percentage points.</p><p>Nearly half the recent difference in return between the two funds is attributable to utility stocks alone, says Daniel Prince, head of iShares product consulting at <a href=\"https://laohu8.com/S/BLK\">BlackRock</a>. Select Dividend, with 28% of its assets in utilities, has gotten a big boost from them. Its top utility holding, Dominion Energy, has gained 17.8% over the past three months. Core High Dividend, with only 9% in utilities, hasn't kept pace.</p><p>To be fair, utility stocks have still barely caught up to where they were at the end of 2021. They were beaten up so badly last year that they're still considerably cheaper, on average, than the stock market overall.</p><p>The Dow Jones U.S. Utilities Index trades at 17 times expected earnings over the next year; the S&P 500 is at 20 times projected earnings.</p><p>So this isn't a bubble -- not yet, anyway. But income-oriented investors accustomed to thinking of power companies as the sleepiest and safest of industries should realize the game has changed.</p><p>Hot money always follows hot performance. Remarkably, investors have yanked about $4 billion out of utility ETFs over the past year. That outflow will surely turn into a flood of new money if the stocks stay hot.</p><p>And stocks that can go up 15% or more in a month, as many power companies have done since mid-April, can also go down 15% or more in a month -- something that utilities never used to do unless they were on the verge of going bust.</p><p>Just as bonds have delivered startling volatility in the past few years, income-oriented utility investors should make sure they're ready for some shocks along the way.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Utilities Are Lighting Up the Stock Market</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Utilities Are Lighting Up the Stock Market\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-05-18 08:52</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/cbd2643142dc33e33e9e2d897efc1ad1\" alt=\"ILLUSTRATION: ALEX NABAUM\" title=\"ILLUSTRATION: ALEX NABAUM\" tg-width=\"700\" tg-height=\"466\"/><span>ILLUSTRATION: ALEX NABAUM</span></p><p>The stock market's tortoises just got hare-y.</p><p>Electric-utility stocks have long been considered the ultimate in stodgy, slow-but-steady investments -- appealing strongly to people who value income and long-term safety above growth and quick gains.</p><p>In the past few months, though, utilities have left the rest of the market in the dust. These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.</p><p>That has introduced a new risk to an old bet on safety. <a href=\"https://laohu8.com/S/ISBC\">Investors</a> looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.</p><p>This spring, "AI caught the market by storm," says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity <a href=\"https://laohu8.com/S/SLCT\">Select</a> Utilities mutual fund. "It became recognized more broadly among generalist investors that utilities have become a play on AI."</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4f395cd891df8ee54784a9995d9b457e\" tg-width=\"482\" tg-height=\"619\"/></p><p>And just like that, as if someone had flipped a switch, the spotlight was on and these stocks got hot.</p><p>As Bespoke Investment Group, a research firm, pointed out this week, three of this year's five best-performing stocks in the S&P 500 are utilities: Vistra, <a href=\"https://laohu8.com/S/STZ.B\">Constellation</a> Energy and NRG Energy. Vistra, up 143%, has even outperformed the king of AI itself, Nvidia; <a href=\"https://laohu8.com/S/STZ\">Constellation</a>, up 85%, is barely behind it.</p><p>For utility investors, this is like night and day.</p><p>Last year was a total blackout. The Dow Jones Utility Index lost 7.2%, while the S&P 500 gained 26.3%; both figures include dividends. That was the worst annual underperformance by utilities since 1999.</p><p>Higher interest rates were part of the problem. Rising yields not only increased borrowing costs for utilities, but made their shares less attractive relative to bonds.</p><p>And 2023 wasn't the only recent off year. The spectacular implosion of PG&E in 2017 and 2018 had investors worrying that power companies face growing risks in a warming world.</p><p>Utilities inched up only an average of 6.6% annually over the five years ended last Dec. 31; the S&P 500 gained 15.7% annually.</p><p>The business of providing electricity hasn't grown in the past couple of decades as conservation and more-efficient technology have reduced consumption. The U.S. generated slightly less electricity in 2021 than it had in 2007, according to the federal Energy <a href=\"https://laohu8.com/S/III\">Information</a> Administration -- even though the economy grew more than 3% annually over that period.</p><p>Now, however, the need for energy is finally expanding. On their April 23 earnings-announcement call, executives at <a href=\"https://laohu8.com/S/NEE\">NextEra</a> estimated that electricity demand from data centers alone would grow 15% a year through the end of the decade.</p><p>AI isn't the only reason utilities have heated up so fast. The rapid increase in demand for electricity nationwide comes from three main sources, says Maria Pope, CEO of <a href=\"https://laohu8.com/S/POR\">Portland General</a> Electric, Oregon's biggest utility.</p><p>One is the revival of domestic manufacturing after decades of moving offshore. Another is the boom in semiconductor production, boosted by government support. But the expansion of data centers, "driven by the insatiable appetite of AI," is the fastest-growing source of industrial demand, says Pope.</p><p>Jay Rhame, chief executive of Reaves Asset Management, which manages about $3 billion in utility stocks, thinks the only historical parallel is the boom in electricity generation that followed the widespread adoption of air conditioning in the 1960s and 1970s.</p><p>Utilities are suddenly so hot that they're affecting the performance of funds in broader segments of the market. Look at two exchange-traded funds that specialize in income-producing stocks: <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Select Dividend and iShares Core High Dividend. Over the past three months, Core High Dividend is up 7.2%, slightly more than the S&P 500; Select Dividend, meanwhile, has gained 9.6%, outperforming the broad market by 3.2 percentage points.</p><p>Nearly half the recent difference in return between the two funds is attributable to utility stocks alone, says Daniel Prince, head of iShares product consulting at <a href=\"https://laohu8.com/S/BLK\">BlackRock</a>. Select Dividend, with 28% of its assets in utilities, has gotten a big boost from them. Its top utility holding, Dominion Energy, has gained 17.8% over the past three months. Core High Dividend, with only 9% in utilities, hasn't kept pace.</p><p>To be fair, utility stocks have still barely caught up to where they were at the end of 2021. They were beaten up so badly last year that they're still considerably cheaper, on average, than the stock market overall.</p><p>The Dow Jones U.S. Utilities Index trades at 17 times expected earnings over the next year; the S&P 500 is at 20 times projected earnings.</p><p>So this isn't a bubble -- not yet, anyway. But income-oriented investors accustomed to thinking of power companies as the sleepiest and safest of industries should realize the game has changed.</p><p>Hot money always follows hot performance. Remarkably, investors have yanked about $4 billion out of utility ETFs over the past year. That outflow will surely turn into a flood of new money if the stocks stay hot.</p><p>And stocks that can go up 15% or more in a month, as many power companies have done since mid-April, can also go down 15% or more in a month -- something that utilities never used to do unless they were on the verge of going bust.</p><p>Just as bonds have delivered startling volatility in the past few years, income-oriented utility investors should make sure they're ready for some shocks along the way.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NRG":"NRG能源","BK4581":"高盛持仓","VST":"Vistra Energy Corp.","BK4585":"ETF&股票定投概念","BK4559":"巴菲特持仓","CEG":"Constellation Energy Corp","BK4534":"瑞士信贷持仓","BK4550":"红杉资本持仓","BK4588":"碎股","BK4504":"桥水持仓"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2436910536","content_text":"ILLUSTRATION: ALEX NABAUMThe stock market's tortoises just got hare-y.Electric-utility stocks have long been considered the ultimate in stodgy, slow-but-steady investments -- appealing strongly to people who value income and long-term safety above growth and quick gains.In the past few months, though, utilities have left the rest of the market in the dust. These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.That has introduced a new risk to an old bet on safety. Investors looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.This spring, \"AI caught the market by storm,\" says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity Select Utilities mutual fund. \"It became recognized more broadly among generalist investors that utilities have become a play on AI.\"And just like that, as if someone had flipped a switch, the spotlight was on and these stocks got hot.As Bespoke Investment Group, a research firm, pointed out this week, three of this year's five best-performing stocks in the S&P 500 are utilities: Vistra, Constellation Energy and NRG Energy. Vistra, up 143%, has even outperformed the king of AI itself, Nvidia; Constellation, up 85%, is barely behind it.For utility investors, this is like night and day.Last year was a total blackout. The Dow Jones Utility Index lost 7.2%, while the S&P 500 gained 26.3%; both figures include dividends. That was the worst annual underperformance by utilities since 1999.Higher interest rates were part of the problem. Rising yields not only increased borrowing costs for utilities, but made their shares less attractive relative to bonds.And 2023 wasn't the only recent off year. The spectacular implosion of PG&E in 2017 and 2018 had investors worrying that power companies face growing risks in a warming world.Utilities inched up only an average of 6.6% annually over the five years ended last Dec. 31; the S&P 500 gained 15.7% annually.The business of providing electricity hasn't grown in the past couple of decades as conservation and more-efficient technology have reduced consumption. The U.S. generated slightly less electricity in 2021 than it had in 2007, according to the federal Energy Information Administration -- even though the economy grew more than 3% annually over that period.Now, however, the need for energy is finally expanding. On their April 23 earnings-announcement call, executives at NextEra estimated that electricity demand from data centers alone would grow 15% a year through the end of the decade.AI isn't the only reason utilities have heated up so fast. The rapid increase in demand for electricity nationwide comes from three main sources, says Maria Pope, CEO of Portland General Electric, Oregon's biggest utility.One is the revival of domestic manufacturing after decades of moving offshore. Another is the boom in semiconductor production, boosted by government support. But the expansion of data centers, \"driven by the insatiable appetite of AI,\" is the fastest-growing source of industrial demand, says Pope.Jay Rhame, chief executive of Reaves Asset Management, which manages about $3 billion in utility stocks, thinks the only historical parallel is the boom in electricity generation that followed the widespread adoption of air conditioning in the 1960s and 1970s.Utilities are suddenly so hot that they're affecting the performance of funds in broader segments of the market. Look at two exchange-traded funds that specialize in income-producing stocks: iShares Select Dividend and iShares Core High Dividend. Over the past three months, Core High Dividend is up 7.2%, slightly more than the S&P 500; Select Dividend, meanwhile, has gained 9.6%, outperforming the broad market by 3.2 percentage points.Nearly half the recent difference in return between the two funds is attributable to utility stocks alone, says Daniel Prince, head of iShares product consulting at BlackRock. Select Dividend, with 28% of its assets in utilities, has gotten a big boost from them. Its top utility holding, Dominion Energy, has gained 17.8% over the past three months. Core High Dividend, with only 9% in utilities, hasn't kept pace.To be fair, utility stocks have still barely caught up to where they were at the end of 2021. They were beaten up so badly last year that they're still considerably cheaper, on average, than the stock market overall.The Dow Jones U.S. Utilities Index trades at 17 times expected earnings over the next year; the S&P 500 is at 20 times projected earnings.So this isn't a bubble -- not yet, anyway. But income-oriented investors accustomed to thinking of power companies as the sleepiest and safest of industries should realize the game has changed.Hot money always follows hot performance. Remarkably, investors have yanked about $4 billion out of utility ETFs over the past year. That outflow will surely turn into a flood of new money if the stocks stay hot.And stocks that can go up 15% or more in a month, as many power companies have done since mid-April, can also go down 15% or more in a month -- something that utilities never used to do unless they were on the verge of going bust.Just as bonds have delivered startling volatility in the past few years, income-oriented utility investors should make sure they're ready for some shocks along the way.","news_type":1},"isVote":1,"tweetType":1,"viewCount":93,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":102200446,"gmtCreate":1620213557185,"gmtModify":1704340245657,"author":{"id":"3582879010097745","authorId":"3582879010097745","name":"Heidern","avatar":"https://static.tigerbbs.com/2e213da33e72ca959d45b2edecaf590a","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Sounds doge-y. Like & comment","listText":"Sounds doge-y. Like & comment","text":"Sounds doge-y. Like & comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/102200446","repostId":"1115203133","repostType":4,"repost":{"id":"1115203133","pubTimestamp":1620178775,"share":"https://www.laohu8.com/m/news/1115203133?lang=&edition=full","pubTime":"2021-05-05 09:39","market":"us","language":"en","title":"Why is dogecoin’s price spiking? The crypto has surged 11,000% in 2021","url":"https://stock-news.laohu8.com/highlight/detail?id=1115203133","media":"Market Wacth","summary":"Every dog has its day…but a whole year?Indeed, dogecoin, the meme cryptocurrency linked to an image ","content":"<p>Every dog has its day…but a whole year?</p><p>Indeed, dogecoin, the meme cryptocurrency linked to an image of a Shiba Inu dog, has been enjoying one of the best years for cryptocurrency in recent memory, boasting year-to-date gains of more than 11,000% and putting it in the top 10 of the most highly valued digital assets this year.</p><p>At last check, dogecoinDOGEUSD,+8.26%was changing hands at 54 cents, up more than 23% in the past 24 hours and up around 11,210% so far in 2021, according to CoinDesk.</p><p>That parabolic rise is drawing both applause and apprehension as its supporters aim to drive the parody coin to a value near $1, with critics warning that the asset bears all the hallmarks of an asset bubble that is bound to pop and leave carnage in its wake.</p><p>Only, don’t tell that to those cheerleading the crypto, or risk being met with this common refrain: “enjoy being poor.”<img src=\"https://static.tigerbbs.com/7c7201d3eb982c0d5d636bf8ff4a1ca7\" tg-width=\"505\" tg-height=\"367\" referrerpolicy=\"no-referrer\">So why is dogecoin, pronounced “dōj-coin,” on such a monumental tear that has outstripped crypto considered more serious representatives of the age of digital assets and blockchain? Here are a few reasons:</p><p>Its biggest booster set to guest host ‘SNL’</p><p>Elon Musk, CEO of Tesla Inc. and SpaceX, will host “Saturday Night Live” this weekend, which has already drawn cheers and jeers for the technologist. He has become one of the most prominent and vocal champions of dogecoin this year and some speculate that he could do something to promote doge.</p><p>Musk did refer to himself as the “dogefather” in one recent tweet ahead of his “Saturday Night Live” gig.</p><p><img src=\"https://static.tigerbbs.com/54a1a1602240507ad985c5efcb2571f5\" tg-width=\"501\" tg-height=\"177\" referrerpolicy=\"no-referrer\">Brokerages trade dogecoin</p><p>A number of new venues have announced that they will trade dogecoin on their exchanges in recent days and weeks.</p><p>Crypto exchange Geminion Tuesdayannounced trading and custody support for the coin. Trading platform eToro also made dogecoin available for trading on its platform.Webullallowed its users to purchase dogecoin back on April 20.</p><p>FOMO</p><p>Fear of missing out also is said to be behind the surge. Some crypto participants speculate that the rise in dogecoin is being supported by retail traders who see the parody coin as more accessible investment (or trade) than, say, bitcoinBTCUSD,-0.16%,which was changing hands at $54,000, at last check on CoinDesk.</p><p>“Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of ‘Saturday Night Live,’” wrote Edward Moya, senior market analyst at Oanda, in a daily note.</p><p>Gains in traditional assets also might seem more pedestrian. By comparison, gold futuresGC00,0.17%are down 6% so far this year, the Dow Jones Industrial AverageDJIA,+0.06%and the S&P 500 indexSPX,-0.67%are up by at least 10% in 2021, while the Nasdaq Composite IndexCOMP,-1.88%has gained over 5%.</p><p>Accessibility</p><p>Konstantin Boyko-Romanovsky, CEO of Allnodes, via an emailed message, said he viewed support from Musk and fellow billionaire Mark Cuban as central to the bull thesis for dogecoin, but also said that some may perceive the crypto as more accessible compared against bitcoin, which hit a recent peak above $60,000 before cooling.</p><p>“It appeals more to the general public because it costs so little. $60,000 for a single bitcoin may be intimidating to some. In a way, doge then is more like a USD but in a digital form,” he wrote.</p><p>Bubbles & manias</p><p>Moya wrote that the dogecoin bubble should have “popped by now, but institutional interest is trying to take advantage of this momentum and that could support another push higher.”</p><p>Many skeptics warn that dogecoin could leave a lot of newbie investors hemorrhaging losses if they wade into the asset imprudently.</p>","source":"lsy1604288433698","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why is dogecoin’s price spiking? The crypto has surged 11,000% in 2021</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy is dogecoin’s price spiking? The crypto has surged 11,000% in 2021\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-05 09:39 GMT+8 <a href=https://www.marketwatch.com/story/why-is-dogecoins-price-spiking-the-crypto-has-surged-11-000-in-2021-11620151738?mod=home-page><strong>Market Wacth</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Every dog has its day…but a whole year?Indeed, dogecoin, the meme cryptocurrency linked to an image of a Shiba Inu dog, has been enjoying one of the best years for cryptocurrency in recent memory, ...</p>\n\n<a href=\"https://www.marketwatch.com/story/why-is-dogecoins-price-spiking-the-crypto-has-surged-11-000-in-2021-11620151738?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.marketwatch.com/story/why-is-dogecoins-price-spiking-the-crypto-has-surged-11-000-in-2021-11620151738?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1115203133","content_text":"Every dog has its day…but a whole year?Indeed, dogecoin, the meme cryptocurrency linked to an image of a Shiba Inu dog, has been enjoying one of the best years for cryptocurrency in recent memory, boasting year-to-date gains of more than 11,000% and putting it in the top 10 of the most highly valued digital assets this year.At last check, dogecoinDOGEUSD,+8.26%was changing hands at 54 cents, up more than 23% in the past 24 hours and up around 11,210% so far in 2021, according to CoinDesk.That parabolic rise is drawing both applause and apprehension as its supporters aim to drive the parody coin to a value near $1, with critics warning that the asset bears all the hallmarks of an asset bubble that is bound to pop and leave carnage in its wake.Only, don’t tell that to those cheerleading the crypto, or risk being met with this common refrain: “enjoy being poor.”So why is dogecoin, pronounced “dōj-coin,” on such a monumental tear that has outstripped crypto considered more serious representatives of the age of digital assets and blockchain? Here are a few reasons:Its biggest booster set to guest host ‘SNL’Elon Musk, CEO of Tesla Inc. and SpaceX, will host “Saturday Night Live” this weekend, which has already drawn cheers and jeers for the technologist. He has become one of the most prominent and vocal champions of dogecoin this year and some speculate that he could do something to promote doge.Musk did refer to himself as the “dogefather” in one recent tweet ahead of his “Saturday Night Live” gig.Brokerages trade dogecoinA number of new venues have announced that they will trade dogecoin on their exchanges in recent days and weeks.Crypto exchange Geminion Tuesdayannounced trading and custody support for the coin. Trading platform eToro also made dogecoin available for trading on its platform.Webullallowed its users to purchase dogecoin back on April 20.FOMOFear of missing out also is said to be behind the surge. Some crypto participants speculate that the rise in dogecoin is being supported by retail traders who see the parody coin as more accessible investment (or trade) than, say, bitcoinBTCUSD,-0.16%,which was changing hands at $54,000, at last check on CoinDesk.“Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of ‘Saturday Night Live,’” wrote Edward Moya, senior market analyst at Oanda, in a daily note.Gains in traditional assets also might seem more pedestrian. By comparison, gold futuresGC00,0.17%are down 6% so far this year, the Dow Jones Industrial AverageDJIA,+0.06%and the S&P 500 indexSPX,-0.67%are up by at least 10% in 2021, while the Nasdaq Composite IndexCOMP,-1.88%has gained over 5%.AccessibilityKonstantin Boyko-Romanovsky, CEO of Allnodes, via an emailed message, said he viewed support from Musk and fellow billionaire Mark Cuban as central to the bull thesis for dogecoin, but also said that some may perceive the crypto as more accessible compared against bitcoin, which hit a recent peak above $60,000 before cooling.“It appeals more to the general public because it costs so little. $60,000 for a single bitcoin may be intimidating to some. In a way, doge then is more like a USD but in a digital form,” he wrote.Bubbles & maniasMoya wrote that the dogecoin bubble should have “popped by now, but institutional interest is trying to take advantage of this momentum and that could support another push higher.”Many skeptics warn that dogecoin could leave a lot of newbie investors hemorrhaging losses if they wade into the asset imprudently.","news_type":1},"isVote":1,"tweetType":1,"viewCount":11,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":307153808949520,"gmtCreate":1716023886911,"gmtModify":1716030693231,"author":{"id":"3582879010097745","authorId":"3582879010097745","name":"Heidern","avatar":"https://static.tigerbbs.com/2e213da33e72ca959d45b2edecaf590a","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"i we m","listText":"i we m","text":"i we m","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/307153808949520","repostId":"2436910536","repostType":2,"repost":{"id":"2436910536","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1715993566,"share":"https://www.laohu8.com/m/news/2436910536?lang=&edition=full","pubTime":"2024-05-18 08:52","market":"sg","language":"en","title":"Why Utilities Are Lighting Up the Stock Market","url":"https://stock-news.laohu8.com/highlight/detail?id=2436910536","media":"Dow Jones","summary":"Electric-utility stocks have long been considered the ultimate in stodgy, slow-but-steady investments -- appealing strongly to people who value income and long-term safety above growth and quick gains.In the past few months, though, utilities have left the rest of the market in the dust. These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.That has introduced a new risk to an old bet on safety. Investors looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.This spring, \"AI caught the market by storm,\" says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity Select Utilities mutual fund. \"It became recognized more broadly among generalist investors that utilities have become a play on AI.\". And just like that, as if someone had flipped a switch, the spotlight wa","content":"<html><head></head><body><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/cbd2643142dc33e33e9e2d897efc1ad1\" alt=\"ILLUSTRATION: ALEX NABAUM\" title=\"ILLUSTRATION: ALEX NABAUM\" tg-width=\"700\" tg-height=\"466\"/><span>ILLUSTRATION: ALEX NABAUM</span></p><p>The stock market's tortoises just got hare-y.</p><p>Electric-utility stocks have long been considered the ultimate in stodgy, slow-but-steady investments -- appealing strongly to people who value income and long-term safety above growth and quick gains.</p><p>In the past few months, though, utilities have left the rest of the market in the dust. These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.</p><p>That has introduced a new risk to an old bet on safety. <a href=\"https://laohu8.com/S/ISBC\">Investors</a> looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.</p><p>This spring, "AI caught the market by storm," says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity <a href=\"https://laohu8.com/S/SLCT\">Select</a> Utilities mutual fund. "It became recognized more broadly among generalist investors that utilities have become a play on AI."</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4f395cd891df8ee54784a9995d9b457e\" tg-width=\"482\" tg-height=\"619\"/></p><p>And just like that, as if someone had flipped a switch, the spotlight was on and these stocks got hot.</p><p>As Bespoke Investment Group, a research firm, pointed out this week, three of this year's five best-performing stocks in the S&P 500 are utilities: Vistra, <a href=\"https://laohu8.com/S/STZ.B\">Constellation</a> Energy and NRG Energy. Vistra, up 143%, has even outperformed the king of AI itself, Nvidia; <a href=\"https://laohu8.com/S/STZ\">Constellation</a>, up 85%, is barely behind it.</p><p>For utility investors, this is like night and day.</p><p>Last year was a total blackout. The Dow Jones Utility Index lost 7.2%, while the S&P 500 gained 26.3%; both figures include dividends. That was the worst annual underperformance by utilities since 1999.</p><p>Higher interest rates were part of the problem. Rising yields not only increased borrowing costs for utilities, but made their shares less attractive relative to bonds.</p><p>And 2023 wasn't the only recent off year. The spectacular implosion of PG&E in 2017 and 2018 had investors worrying that power companies face growing risks in a warming world.</p><p>Utilities inched up only an average of 6.6% annually over the five years ended last Dec. 31; the S&P 500 gained 15.7% annually.</p><p>The business of providing electricity hasn't grown in the past couple of decades as conservation and more-efficient technology have reduced consumption. The U.S. generated slightly less electricity in 2021 than it had in 2007, according to the federal Energy <a href=\"https://laohu8.com/S/III\">Information</a> Administration -- even though the economy grew more than 3% annually over that period.</p><p>Now, however, the need for energy is finally expanding. On their April 23 earnings-announcement call, executives at <a href=\"https://laohu8.com/S/NEE\">NextEra</a> estimated that electricity demand from data centers alone would grow 15% a year through the end of the decade.</p><p>AI isn't the only reason utilities have heated up so fast. The rapid increase in demand for electricity nationwide comes from three main sources, says Maria Pope, CEO of <a href=\"https://laohu8.com/S/POR\">Portland General</a> Electric, Oregon's biggest utility.</p><p>One is the revival of domestic manufacturing after decades of moving offshore. Another is the boom in semiconductor production, boosted by government support. But the expansion of data centers, "driven by the insatiable appetite of AI," is the fastest-growing source of industrial demand, says Pope.</p><p>Jay Rhame, chief executive of Reaves Asset Management, which manages about $3 billion in utility stocks, thinks the only historical parallel is the boom in electricity generation that followed the widespread adoption of air conditioning in the 1960s and 1970s.</p><p>Utilities are suddenly so hot that they're affecting the performance of funds in broader segments of the market. Look at two exchange-traded funds that specialize in income-producing stocks: <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Select Dividend and iShares Core High Dividend. Over the past three months, Core High Dividend is up 7.2%, slightly more than the S&P 500; Select Dividend, meanwhile, has gained 9.6%, outperforming the broad market by 3.2 percentage points.</p><p>Nearly half the recent difference in return between the two funds is attributable to utility stocks alone, says Daniel Prince, head of iShares product consulting at <a href=\"https://laohu8.com/S/BLK\">BlackRock</a>. Select Dividend, with 28% of its assets in utilities, has gotten a big boost from them. Its top utility holding, Dominion Energy, has gained 17.8% over the past three months. Core High Dividend, with only 9% in utilities, hasn't kept pace.</p><p>To be fair, utility stocks have still barely caught up to where they were at the end of 2021. They were beaten up so badly last year that they're still considerably cheaper, on average, than the stock market overall.</p><p>The Dow Jones U.S. Utilities Index trades at 17 times expected earnings over the next year; the S&P 500 is at 20 times projected earnings.</p><p>So this isn't a bubble -- not yet, anyway. But income-oriented investors accustomed to thinking of power companies as the sleepiest and safest of industries should realize the game has changed.</p><p>Hot money always follows hot performance. Remarkably, investors have yanked about $4 billion out of utility ETFs over the past year. That outflow will surely turn into a flood of new money if the stocks stay hot.</p><p>And stocks that can go up 15% or more in a month, as many power companies have done since mid-April, can also go down 15% or more in a month -- something that utilities never used to do unless they were on the verge of going bust.</p><p>Just as bonds have delivered startling volatility in the past few years, income-oriented utility investors should make sure they're ready for some shocks along the way.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Utilities Are Lighting Up the Stock Market</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Utilities Are Lighting Up the Stock Market\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-05-18 08:52</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/cbd2643142dc33e33e9e2d897efc1ad1\" alt=\"ILLUSTRATION: ALEX NABAUM\" title=\"ILLUSTRATION: ALEX NABAUM\" tg-width=\"700\" tg-height=\"466\"/><span>ILLUSTRATION: ALEX NABAUM</span></p><p>The stock market's tortoises just got hare-y.</p><p>Electric-utility stocks have long been considered the ultimate in stodgy, slow-but-steady investments -- appealing strongly to people who value income and long-term safety above growth and quick gains.</p><p>In the past few months, though, utilities have left the rest of the market in the dust. These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.</p><p>That has introduced a new risk to an old bet on safety. <a href=\"https://laohu8.com/S/ISBC\">Investors</a> looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.</p><p>This spring, "AI caught the market by storm," says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity <a href=\"https://laohu8.com/S/SLCT\">Select</a> Utilities mutual fund. "It became recognized more broadly among generalist investors that utilities have become a play on AI."</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4f395cd891df8ee54784a9995d9b457e\" tg-width=\"482\" tg-height=\"619\"/></p><p>And just like that, as if someone had flipped a switch, the spotlight was on and these stocks got hot.</p><p>As Bespoke Investment Group, a research firm, pointed out this week, three of this year's five best-performing stocks in the S&P 500 are utilities: Vistra, <a href=\"https://laohu8.com/S/STZ.B\">Constellation</a> Energy and NRG Energy. Vistra, up 143%, has even outperformed the king of AI itself, Nvidia; <a href=\"https://laohu8.com/S/STZ\">Constellation</a>, up 85%, is barely behind it.</p><p>For utility investors, this is like night and day.</p><p>Last year was a total blackout. The Dow Jones Utility Index lost 7.2%, while the S&P 500 gained 26.3%; both figures include dividends. That was the worst annual underperformance by utilities since 1999.</p><p>Higher interest rates were part of the problem. Rising yields not only increased borrowing costs for utilities, but made their shares less attractive relative to bonds.</p><p>And 2023 wasn't the only recent off year. The spectacular implosion of PG&E in 2017 and 2018 had investors worrying that power companies face growing risks in a warming world.</p><p>Utilities inched up only an average of 6.6% annually over the five years ended last Dec. 31; the S&P 500 gained 15.7% annually.</p><p>The business of providing electricity hasn't grown in the past couple of decades as conservation and more-efficient technology have reduced consumption. The U.S. generated slightly less electricity in 2021 than it had in 2007, according to the federal Energy <a href=\"https://laohu8.com/S/III\">Information</a> Administration -- even though the economy grew more than 3% annually over that period.</p><p>Now, however, the need for energy is finally expanding. On their April 23 earnings-announcement call, executives at <a href=\"https://laohu8.com/S/NEE\">NextEra</a> estimated that electricity demand from data centers alone would grow 15% a year through the end of the decade.</p><p>AI isn't the only reason utilities have heated up so fast. The rapid increase in demand for electricity nationwide comes from three main sources, says Maria Pope, CEO of <a href=\"https://laohu8.com/S/POR\">Portland General</a> Electric, Oregon's biggest utility.</p><p>One is the revival of domestic manufacturing after decades of moving offshore. Another is the boom in semiconductor production, boosted by government support. But the expansion of data centers, "driven by the insatiable appetite of AI," is the fastest-growing source of industrial demand, says Pope.</p><p>Jay Rhame, chief executive of Reaves Asset Management, which manages about $3 billion in utility stocks, thinks the only historical parallel is the boom in electricity generation that followed the widespread adoption of air conditioning in the 1960s and 1970s.</p><p>Utilities are suddenly so hot that they're affecting the performance of funds in broader segments of the market. Look at two exchange-traded funds that specialize in income-producing stocks: <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Select Dividend and iShares Core High Dividend. Over the past three months, Core High Dividend is up 7.2%, slightly more than the S&P 500; Select Dividend, meanwhile, has gained 9.6%, outperforming the broad market by 3.2 percentage points.</p><p>Nearly half the recent difference in return between the two funds is attributable to utility stocks alone, says Daniel Prince, head of iShares product consulting at <a href=\"https://laohu8.com/S/BLK\">BlackRock</a>. Select Dividend, with 28% of its assets in utilities, has gotten a big boost from them. Its top utility holding, Dominion Energy, has gained 17.8% over the past three months. Core High Dividend, with only 9% in utilities, hasn't kept pace.</p><p>To be fair, utility stocks have still barely caught up to where they were at the end of 2021. They were beaten up so badly last year that they're still considerably cheaper, on average, than the stock market overall.</p><p>The Dow Jones U.S. Utilities Index trades at 17 times expected earnings over the next year; the S&P 500 is at 20 times projected earnings.</p><p>So this isn't a bubble -- not yet, anyway. But income-oriented investors accustomed to thinking of power companies as the sleepiest and safest of industries should realize the game has changed.</p><p>Hot money always follows hot performance. Remarkably, investors have yanked about $4 billion out of utility ETFs over the past year. That outflow will surely turn into a flood of new money if the stocks stay hot.</p><p>And stocks that can go up 15% or more in a month, as many power companies have done since mid-April, can also go down 15% or more in a month -- something that utilities never used to do unless they were on the verge of going bust.</p><p>Just as bonds have delivered startling volatility in the past few years, income-oriented utility investors should make sure they're ready for some shocks along the way.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NRG":"NRG能源","BK4581":"高盛持仓","VST":"Vistra Energy Corp.","BK4585":"ETF&股票定投概念","BK4559":"巴菲特持仓","CEG":"Constellation Energy Corp","BK4534":"瑞士信贷持仓","BK4550":"红杉资本持仓","BK4588":"碎股","BK4504":"桥水持仓"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2436910536","content_text":"ILLUSTRATION: ALEX NABAUMThe stock market's tortoises just got hare-y.Electric-utility stocks have long been considered the ultimate in stodgy, slow-but-steady investments -- appealing strongly to people who value income and long-term safety above growth and quick gains.In the past few months, though, utilities have left the rest of the market in the dust. These dullest of all stocks have suddenly become a bet on the single flashiest area of the market: artificial intelligence. AI requires a lot of computing power, and computers use a lot of electricity.That has introduced a new risk to an old bet on safety. Investors looking for income and value may now find themselves holding stocks that bang around a lot more than they did in the past.This spring, \"AI caught the market by storm,\" says Douglas Simmons, portfolio manager of the $1.2 billion Fidelity Select Utilities mutual fund. \"It became recognized more broadly among generalist investors that utilities have become a play on AI.\"And just like that, as if someone had flipped a switch, the spotlight was on and these stocks got hot.As Bespoke Investment Group, a research firm, pointed out this week, three of this year's five best-performing stocks in the S&P 500 are utilities: Vistra, Constellation Energy and NRG Energy. Vistra, up 143%, has even outperformed the king of AI itself, Nvidia; Constellation, up 85%, is barely behind it.For utility investors, this is like night and day.Last year was a total blackout. The Dow Jones Utility Index lost 7.2%, while the S&P 500 gained 26.3%; both figures include dividends. That was the worst annual underperformance by utilities since 1999.Higher interest rates were part of the problem. Rising yields not only increased borrowing costs for utilities, but made their shares less attractive relative to bonds.And 2023 wasn't the only recent off year. The spectacular implosion of PG&E in 2017 and 2018 had investors worrying that power companies face growing risks in a warming world.Utilities inched up only an average of 6.6% annually over the five years ended last Dec. 31; the S&P 500 gained 15.7% annually.The business of providing electricity hasn't grown in the past couple of decades as conservation and more-efficient technology have reduced consumption. The U.S. generated slightly less electricity in 2021 than it had in 2007, according to the federal Energy Information Administration -- even though the economy grew more than 3% annually over that period.Now, however, the need for energy is finally expanding. On their April 23 earnings-announcement call, executives at NextEra estimated that electricity demand from data centers alone would grow 15% a year through the end of the decade.AI isn't the only reason utilities have heated up so fast. The rapid increase in demand for electricity nationwide comes from three main sources, says Maria Pope, CEO of Portland General Electric, Oregon's biggest utility.One is the revival of domestic manufacturing after decades of moving offshore. Another is the boom in semiconductor production, boosted by government support. But the expansion of data centers, \"driven by the insatiable appetite of AI,\" is the fastest-growing source of industrial demand, says Pope.Jay Rhame, chief executive of Reaves Asset Management, which manages about $3 billion in utility stocks, thinks the only historical parallel is the boom in electricity generation that followed the widespread adoption of air conditioning in the 1960s and 1970s.Utilities are suddenly so hot that they're affecting the performance of funds in broader segments of the market. Look at two exchange-traded funds that specialize in income-producing stocks: iShares Select Dividend and iShares Core High Dividend. Over the past three months, Core High Dividend is up 7.2%, slightly more than the S&P 500; Select Dividend, meanwhile, has gained 9.6%, outperforming the broad market by 3.2 percentage points.Nearly half the recent difference in return between the two funds is attributable to utility stocks alone, says Daniel Prince, head of iShares product consulting at BlackRock. Select Dividend, with 28% of its assets in utilities, has gotten a big boost from them. Its top utility holding, Dominion Energy, has gained 17.8% over the past three months. Core High Dividend, with only 9% in utilities, hasn't kept pace.To be fair, utility stocks have still barely caught up to where they were at the end of 2021. They were beaten up so badly last year that they're still considerably cheaper, on average, than the stock market overall.The Dow Jones U.S. Utilities Index trades at 17 times expected earnings over the next year; the S&P 500 is at 20 times projected earnings.So this isn't a bubble -- not yet, anyway. But income-oriented investors accustomed to thinking of power companies as the sleepiest and safest of industries should realize the game has changed.Hot money always follows hot performance. Remarkably, investors have yanked about $4 billion out of utility ETFs over the past year. That outflow will surely turn into a flood of new money if the stocks stay hot.And stocks that can go up 15% or more in a month, as many power companies have done since mid-April, can also go down 15% or more in a month -- something that utilities never used to do unless they were on the verge of going bust.Just as bonds have delivered startling volatility in the past few years, income-oriented utility investors should make sure they're ready for some shocks along the way.","news_type":1},"isVote":1,"tweetType":1,"viewCount":93,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":102200446,"gmtCreate":1620213557185,"gmtModify":1704340245657,"author":{"id":"3582879010097745","authorId":"3582879010097745","name":"Heidern","avatar":"https://static.tigerbbs.com/2e213da33e72ca959d45b2edecaf590a","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Sounds doge-y. Like & comment","listText":"Sounds doge-y. Like & comment","text":"Sounds doge-y. Like & comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/102200446","repostId":"1115203133","repostType":4,"isVote":1,"tweetType":1,"viewCount":11,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}
