did anybody note the inconsist concepts between SS6 and SS11. in SS6, utilities are considered noncyclical and technology firms are cyclical. in SS11, value manager tends to hold utilities and cyclical, which lead to high earnings volatility. can anybody explain? did I miss something here? thanks!
anybody has the same confusion as me?
edit
utilities have low p/e p/b ratios and high dividend yields thus held by value investors. they hold utility stocks for these reasons and not because of cyclicality.
Magix Wrote: ------------------------------------------------------- > utilities have low p/e p/b ratios and high > dividend yields thus held by value investors. they > hold utility stocks for these reasons and not > because of cyclicality. I understand this part, but why value investor’s earning volatility is high since they hold utility stock?