Shyon
09-02 14:40

I’d choose C for now. A 20%+ one-day drop looks tempting, but the biggest issue isn’t valuation—it’s the uncertainty around wildfire liabilities and the Wildfire Fund. I’d rather wait for more clarity before treating $PG&E Corp(PCG)$ or $Edison(EIX)$ as a genuine defensive play.

I still like the utility sector for its relatively stable cash flows, but I wouldn’t assume all utilities carry the same risk. $Utilities Select Sector SPDR Fund(XLU)$ or $Vanguard Utilities ETF(VPU)$ gives me better diversification, while individual California utilities remain much more exposed to regulatory and wildfire-related events.

For me, this is a good reminder that “defensive” doesn’t mean “low risk.” If liability rules improve and financing pressure stabilizes, I’d be more comfortable looking at PCG or EIX after the dust settles. Until then, I’d keep some cash ready rather than rushing into the dip.

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# U.S.-Iran Swings From Ceasefire Rumors to Live Fire; Brent Briefly Tops $90?

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  • BerthaAntoinette
    ·09-02 17:22
    Utility isn’t automatically defensive. XLU is pricing in a pretty friendly rate path already, so the sector-wide risk may be getting glossed over too.
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