Tag: interest rates

Banks comprise around 30% of Warren Buffett’s portfolio by market value. Out of Berkshire Hathaway’s portfolio of 46 stocks, five are commercial banks.

Recession fears have been hovering over the market throughout this year. However, defensives such as utilities are trading at record highs.

On November 5, Bridgewater Associates founder Ray Dalio wrote that he thinks “the system of making capitalism work well for most people is broken.”

Volatility is pushing investors toward supposedly safer investments, but Warren Buffett has been vocal lately about his dislike for gold.

Top utility stocks trended lower and lost 1.3% last week. Broader markets were positive but cautious on trade talk optimism, gaining 0.7% last week.

On Tuesday, Fed Chair Jerome Powell expressed willingness towards interest rate cuts amid the slowdown. So far, the Fed has cut the rates twice this year.

The Fed's stance for upcoming interest rates will be clear when it releases the September meeting minutes on Wednesday. Policymakers seem to be divided.

Despite valuation concerns, utility stocks seem relatively well placed at the moment, especially going into October, compared to broader markets.

Utility stocks soared as Treasury yields fell on September 24. The Utilities Select Sector SPDR ETF gained 1.2% while the S&P 500 tumbled 0.8% yesterday.

Some prominent market personalities, such as Leon Cooperman, chair and CEO of Omega Advisors, feel that the Fed's rate cut decision was unnecessary.