Shyon
09-02
I’d choose C for now. A 20%+ one-day drop looks tempting, but the biggest issue isn’t valuation—it’s the uncertainty around wildfire liabilities and the Wildfire Fund. I’d rather wait for more clarity before treating $PG&E Corp(PCG)$ or $Edison(EIX)$ as a genuine defensive play.

I still like the utility sector for its relatively stable cash flows, but I wouldn’t assume all utilities carry the same risk. $Utilities Select Sector SPDR Fund(XLU)$ or $Vanguard Utilities ETF(VPU)$ gives me better diversification, while individual California utilities remain much more exposed to regulatory and wildfire-related events.

For me, this is a good reminder that “defensive” doesn’t mean “low risk.” If liability rules improve and financing pressure stabilizes, I’d be more comfortable looking at PCG or EIX after the dust settles. Until then, I’d keep some cash ready rather than rushing into the dip.

@TigerStars @Tiger_comments @TigerClub

U.S.-Iran Swings From Ceasefire Rumors to Live Fire; Brent Briefly Tops $90?
The Middle East flipped in a week. On August 30 U.S. forces struck two IRGC sites on Iran's Larak Island — the first direct action in over a month — and Iran hit U.S. bases in return, promising more. Days earlier the market had been trading a ceasefire framework, including free passage through Hormuz, that was never officially confirmed. Brent briefly cleared $90 and sits near $90.50, WTI +2.43% to $85.43. Energy equities have priced none of it: XLE closed Friday +0.63%, before the strike. Hedge through energy names, or watch Hormuz transit first?
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Comments

  • BerthaAntoinette
    09-02
    BerthaAntoinette
    Utility isn’t automatically defensive. XLU is pricing in a pretty friendly rate path already, so the sector-wide risk may be getting glossed over too.
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