Get away from utility stocks before they topple

As stock prices move to all-time highs, it’s to be expected that some people are going to complain about bubbles.

Here’s what’s not expected: The biggest bubble may be in utility stocks.

Consider it a side effect of the long, increasingly frantic hunt for yield in a post-financial crisis world: Utilities XLU, -1.18% are the hottest sector in the market, rising 17% this year and hitting price-to-earnings multiples 26% higher than their long-term norm, according to S&P Capital IQ chief strategist Sam Stovall.

All for a business where demand for the product is actually shrinking slightly, threatened by emerging technology.

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