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May 20, 2024 Investor Insights Thumbnail

May 20, 2024 Investor Insights

Investor Insights

Utilities Heat Up

May 20, 2024

Enjoy this week's "Investor Insights," a weekly newsletter that highlights the financial news you need and provides tips and tricks for making better investment decisions. 

 

  • Due to energy-efficient technology, the US generated slightly less electricity in 2021 than in 2007. As a result, the Utilities sector only grew by an average of 6.6% annually (vs. 15.7% for the S&P 500). However, AI is helping to reinvigorate the Utilities sector, with energy demand now expected to grow 15% annually over the next decade. 1
  • Warren Buffett’s company, Berkshire Hathaway, now has over $189 billion in cash. To put this into perspective, this cash pile alone would make Berkshire the world's 58th-largest economy, just behind Hungary. 2
  • Nationwide, the cost of childcare for two kids exceeds average rent by at least 25% and is more than double that level in eight states. Childcare costs are a growing burden, accounting for about 10% of a married couple's income. 3
  • Privately owned companies are crucial to the US economy. 87% of firms with over $100 million in revenue are private, and these firms account for nearly 80% of job openings. Meanwhile, employment in S&P 500 companies comprises only 18% of jobs. 4

Sources:

  1. WSJ - "Why Utilities Are Lighting Up the Stock Market"
  2. Advisorpedia – “Is Buffet's Cash Hoard a Market Warning? "
  3. AdvisorHub– “Child Care Is More Expensive Than Rent for the Average American Family"
  4. Apollo - "Public Markets are a Small Part of the Overall Economy"

*Past performance is not indicative of future performance

Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter. 

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