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User Info	Are utility ETFs a safe bet in these times?; entered at 2007-12-02 00:08:44
Plaztiq Posts: 226 Registered: 2007-08-08 Bay Area, CA	I'm not a sophisticated investor, a newb myself, but here are some thoughts. If, as discussed in other topics on this forum, we are heading into a deflationary event, then you would see businesses closing and consumers tightening their spending. Not only will there be a slowing of economic activity, there will be a slowing of activity in general. Businesses that shut down no longer need utilities, and in general the price of all things IMO will retrench to lower points. Demand destruction... This is an older article that discusses how energy stocks held up during the 70s bear markets: http://www.financialsense.com/Market/bar.... On the other hand...I think that the era of cheap energy is over, and the cost of energy will rise because it will be more expensive to produce. I believe that is some of the food and fuel "inflation" that we are seeing. In my mind, there aren't any safe long plays. 2007-12-02 00:08:44