Upside momentum continues to favor utility stocks, which retain top billing among US sectors in the one-year total return column via a set of proxy ETFs. These companies have been strong all year, which is starting to worry some analysts. Brian Krawez at Scharf Investments, for instance, told Forbes this week that he’s recommending that investors steer clear of utilities because “they’re trading well above their historical averages in terms of multiples.” Maybe so, but the technical profile in this corner still looks strong. The positive momentum will fade eventually, although it’s not obvious from the rear-view mirror that the turning point is imminent.
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