Investors turn to utilities as recession fears rise
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Investors are increasingly turning to utilities stocks as concerns about a potential recession grow. The sector is seen as a defensive investment during economic uncertainty, offering stability and consistent dividends compared to more volatile market segments.
March 18, 2025 | 11:30 am
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The Utilities Select Sector SPDR Fund (XLU) is likely to see increased investor interest as market participants seek safer investment options during potential economic downturn.
During economic uncertainty, investors typically rotate into defensive sectors like utilities. XLU, representing a broad utilities sector index, is well-positioned to attract capital seeking stability and consistent dividend yields.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90