It's been a volatile though ultimately directionless summer, and there are plenty of potential triggers for more ups and downs ahead. UF Portfolio picks, however, are equipped to handle it.

Rising power demand around the world means power utilities are ripe for the picking. Bargains can also be found in communications, water and energy infrastructure.

Fear of a 2008-style credit crunch and collapse has gripped the market. Use any pullback to establish or add to UF Portfolio favorites.

Investors love bonds right now, despite the fact that yields are hardly attractive. Dividends paid by solid utilities are safer, however, and offer considerably more upside.

Utility stocks reported strong 2009 financial results. Those we hold in the Utility Forecaster Portfolio are set to generate gains through 2010 and well beyond.

With the Philadelphia Utility Index still nearly 30 percent off its December 2007 high, utility stocks aren’t expensive. However, the yield differential between the strong and weak has narrowed sharply.

For the 34th time since 1969 utilities had a bullish fourth quarter, capping off an average 2009 profit of roughly 30 percent for Utility Forecaster recommendations.

The UF Portfolio is well prepared for the day when utes again become interest-rate sensitive.

The still-weak US economy and deteriorating regulatory relations in some states are big negatives. And utility stocks are still taking hits when the news is gloomy. But with balance sheets strengthening across the board, business risks are diminishing.