You may ask yourself, how can one invest in a time like this? Is it worth the risk with the market at a downturn without no forseable resolution in the horizon? One of the answers that a conservative investor will tell you is that to invest in low risk stocks. Enclosed in this category are utility stocks.
Utility stocks are stocks of electric, water, gas, and telephone companies. These are stocks with a relatively decent dividend income and high degree of safety. And why you may ask? The obvious answer is because whether the economy is growing or slowing, people just need electricity, water, gas and phones, these services are an indispensable part of our lives. Investors also prefer to invest in companies such as this because they produce reliable earnings.
Another reason is if interest rates continue to fall, one of the usual actions that the government will make is to lower the interest rates. This is to to puto to order the economy back to its well-balanced and healthy condition.