However, much like the Sept 1938 No-Name hurricane that devastated Cape Cod and New England, sometimes it is difficult to find safe sanctuaries in the middle of a powerful storm, and with the current volatility of 1,000 point swings on the Dow, we certainly are in the middle of a financial cyclone. Usually, utilities offer lower beta values, such as the 0.35 5-yr monthly beta of the S&P Utility ETF ( XLU). Their steady, regulated earnings and higher dividend income can provide less volatility than the overall market, especially when compared to higher valued stocks, such as technology.
Historically, utility stocks have been considered a “safe” sector during times of market upheaval. In the No-Name hurricane of Sept 1938, there were no safe havens as the storm crossed Cape Cod, Massachusetts, leaving 250 dead in its wake
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