STOCKS THAT ACT RATHER LIKE BONDS.

The article looks at the performance of utility stocks in 1967. It explains that utility stocks are regarded as income stocks, thus they tend to act like bonds and regularly go down when interest rates rose. A lessening of the attractions of the yield on utility stocks is noted due to higher yields on bonds. The article also explains why higher interest rates threaten the growth of utility stock which is the advantage it has over a bond.