![]() It’s awfully cynical but that’s the deal. However, in most cases, no alternatives exist for utilities. Typically, consumers facing financial pressures will trade down products or services to increasingly cheaper alternatives. In other words, the utilities enjoy a hostage audience.Īnother factor that keeps the lights on for utility stocks to buy centers on the trade-down effect. ![]() Un7less people at scale plan on living off grid, they must pay whatever company covers their area. Unlike other sectors, the barrier to entry in this field is incredibly steep. Moreover, utility stocks to buy essentially tie into monopolistic business structures. No matter how advanced we become as a society, humans have basic needs that must be fulfilled. ![]() Fundamentally, these energy and resource service providers represent an indelible demand structure. With macroeconomic pressures weighing heavily on market sentiment, investors should play it (relatively) safe with utility stocks to buy.
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