I have been watching Aqua America (WTR) for quite some time now. I never pulled the trigger, because it seemed too expensive. The company has declined almost 15% since its all-time high. This is a lot for a safe water utility. I am still looking for a few safe haven stocks, and Aqua America is a potential candidate. In this article, I will test whether Aqua America fulfills my criteria for a safe haven stock and if right now is the time to pull the trigger.
Why I prefer safe haven stocks over bonds
I used to keep 20% of my portfolio in cash. I liked the idea of always being able to back up the truck when the "big correction" would finally come. When time passed by, I realized that it would be better to put money into bonds, instead of cash. Having bonds would give me the advantage of at least getting a little return. Bonds also have the advantage of compensating for inflation. After a few months, I decided to switch up the strategy again. I stopped allocating money into safe bonds. I discovered that if the "big correction" would come, I would have enough time to buy stocks at a discount and did not need safe cash or bonds on hand for that. But going full into the market would seem too risky for me. Therefore, I decided to keep 20% of my portfolio in the safest sectors of the U.S. market.
