Below is the annual 52-week low for Southern California Edison (SCE) from 1958 to 1967. We’ve also included the 3-month Treasury Bill as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the 3-month Treasury Bill increased from 1.77% to 4.31%. Meanwhile, Southern California Edison (SCE) had a 52-week low range from $15.87 to $31.75.
Posted in 1958-1968, Chart of the Day, interest rates, SCE
Below is the annual 52-week low for New England Electric Systems (NES) from 1958 to 1967. We’ve also included the 3-month Treasury Bill as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the 3-month Treasury Bill increased from 1.77% to 4.31%. Meanwhile, New England Electric Systems (NES) had a 52-week low range from $14.50 to $23.50.
Below is the annual 52-week low for Ohio Edison (OEC) from 1958 to 1967. We’ve also included the 3-month Treasury Bill as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the 3-month Treasury Bill increased from 1.77% to 4.31%. Meanwhile, Ohio Edison (OE) had a 52-week low range from $12.75 to $27.87.
Posted in 10-year Targets, 1958-1968, Chart of the Day, interest rates, Ohio Edison, OSE
Below is the annual 52-week low for Consolidated Edison (ED) from 1958 to 1968. We’ve also included the 3-month Treasury Bill as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the 3-month Treasury Bill increased from 1.77% to 4.31%. Meanwhile, Consolidated Edison (ED) had a 52-week low range from $22.00 to $30.63.
Posted in 1958-1968, Chart of the Day, Consolidated Edison, ED, interest rates
Below is the annual 52-week low for Montana Power (MTP) from 1958 to 1968. We’ve also included the 3-month Treasury Bill as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the 3-month Treasury Bill increased from 1.77% to 4.31%. Meanwhile, Montana Power (MTP) had a 52-week low range from $15.00 to $26.38.
Posted in 1958-1968, Chart of the Day, interest rates, Montana Power
Below is the annual 52-week low for Consolidated Edison (ED) from 1958 to 1967. We’ve also included the 3-month Treasury Bill as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the 3-month Treasury Bill increased from 1.77% to 4.31%. Meanwhile, Consolidated Edison (ED) had a 52-week low range from $22.00 to $30.63.
Below is the annual 52-week low for Florida Power Corp. from 1958 to 1968. We’ve also included the Effective Fed Funds Rate as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the Effective Fed Funds Rate increased from 2.42% to 6.02%. Meanwhile, Florida Power Corp. had a 52-week low range from $19 to $36.75.
Posted in 1958-1968, Chart of the Day, interest rates
Below is the annual 52-week low for Dome Mines (DM) from 1960 to 1968. We’ve also included the Effective Fed Funds Rate as a comparison to show how gold mining stocks perform against the backdrop of rising interest rates.
In this example, the Effective Fed Funds Rate increased from 1.98% to 6.02%. Meanwhile, Dome Mines (DM) had a 52-week low range from $17.12 to $46.25.
Posted in 1958-1968, Chart of the Day, Dome Mines, gold, interest rates
Below is the annual 52-week low for American Electric Power (AEP) from 1958 to 1968. We’ve also included the Effective Fed Funds Rate as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the Effective Fed Funds Rate increased from 2.42% to 6.02%. Meanwhile, American Electric Power (AEP) had a 52-week low range from $17.75 to $32.50.
Posted in 1958-1968, AEP, Chart of the Day, interest rates
Below is the annual 52-week low for Campbell Red Lake Mines (CRK) from 1960 to 1968. We’ve also included the Effective Fed Funds Rate as a comparison to show how gold mining stocks perform against the backdrop of rising interest rates.
In this example, the Effective Fed Funds Rate increased from 1.98% to 6.02%. Meanwhile, Campbell Red Lake Mines (CRK) had a 52-week low range from $9.63 to $24.00.
Every stock market investor should be concerned about the impact that rising interest rates might have on future investment returns. The prevailing theory is that when interest rates rise then stock prices should decline due to the impact to earnings from higher borrowing costs. Since we are at or near the lowest level in interest rates, conventional wisdom suggests that eventually interest rates will rise.
With rising interest rates, investors should expect that stock prices will decline as per share earnings are reduced. One industry that borrows heavily for going operations is the utility sector (electricity, water, gas etc.). This article will give a cursory examination of utility stocks from the beginning of a rising interest rate cycle to the peak (1939 to 1980). We will attempt to determine if the conventional thinking on rising interest rates and their impact on utility stocks is correct.