At this point in the stock-market rally, you have probably seen headlines warning that sentiment is becoming so positive that we’re getting back to the “everything bubble” that preceded the brutal declines of 2022. But a quick look at the 11 sectors of the S&P 500 shows that all but three are trailing their levels at the end of 2021.
And this year’s worst-performing sector may be ripe for long-term investors as the Federal Reserve moves closer to the end of its cycle of raising interest rates. While the utilities sector ranks near the bottom for expected revenue growth, it is expected to increase EPS at a decent 7.7% rate. And declining interest rates will presumably have a similar effect on prices for other income-producing assets, including utility stocks.