In a bull market, some sectors get ignored. These are the “boring” sectors – sectors with little possibility of any technological or other innovation to spur sudden growth. What probably gets ignored is that the balance sheets of companies in the sector are healthy. They have a steady income stream, and in a number of cases they are monopolies or duopolies. The other side of the story is that when the market turns volatile, these sectors gain some attention. For, the street is then looking for companies with predictable earnings and cash flows. After underperforming the market for quite some time, some city gas distributors (CGDs) and others in the gas sector are beginning to show some movement. No, they have not become sudden outperformers. But surely they are good for a tactical bet.
