SPDR Utilities E.T.F. (XLU-N)

(A Top Pick September 12/17 Up 2%) This was a bit of a gamble, but worked out on a total return basis. They saw this as a lifejacket in a market nearing peak levels.

He thinks this is the best of the bond proxy sector that may face some short term headwinds, but is backed by energy trends and modernization of infrastructure. He does not expect this to be a hero, but a conservative holding. Yield 4%.

(A Top Pick Feb 17/17. Up 8%.) This is one where he did almost 65% on a return. He cleared out of this in July at around $54.

US growth is moderate, just not putting up accelerating growth. This is a kind of environment where steady state utilities can do really well for you. Rates don’t seem to be shooting up anytime soon as inflation is just not there.

If we think inflation is coming we should see that 10 year north of 3%, but it is not. We broke above the $49 level. There are a lot of buyers in there. It is one of the strongest sectors. If the 1 year gets above 2.6% then you have broken the theme.

(A Top Pick June 10/15. Up 18.74%.) He has a much higher target on this. There have been some pretty big swings on this. Even on a short-term basis, it’s deeper ranking has still stayed.