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Utilities & Real Estate ETFs: Bond Proxies in a Low-Yield World

Utilities & Real Estate ETFs: Bond Proxies in a Low-Yield World

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 Utilities and real estate sectors are surging in the stock market, with XLU and XLE ETFs acting as bond substitutes. Lower yields make their steady dividends more appealing. However, REITs yield less due to data center and cell tower dominance, while utilities gain from AI growth. Both sectors are capital-heavy with debt, benefiting from lower rates. Charts show potential breakouts, but falling Treasury yields are key. Risks include rising federal debt and inflation pushing yields up. Despite risks, XLU and XLE have a 60% chance of a 10% upside move, with 40% downside risk. Treat them as bond proxies, trading alongside zero-coupon Treasuries if yields drop further. Checkout https://solipillow.com/discount/dnn. Advertise on DNN: advertise@thednn.ai
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