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Utilities Selloff ‘Healthy’: Josh Brown

Declines in utility stocks were part of a healthy market, Josh Brown of Fusion Analytics said Thursday.

"On utilities, let's also keep in mind, a lot of that is chicken equity," he said. "A lot of that is bond money that crept into the stock market."

On CNBC's "Fast Money," Brown noted that investors had entered the defensive sector via the XLU exchange-traded fund.

"And if anything, I think it's healthy to see that market sell off," he added.

Brown also said that the sector had seen stock valuations of 17 to 18 times earnings – and it was time the funds moved elsewhere.

"I'd like to see that money find its money elsewhere in the stock market, not just sit parked in what people thought was a bond proxy," he said.

Trader disclosure: On May 23, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long AAMRQ; Steve Weiss is long UAL; Steve Weiss is long AIG; Steve Weiss is long HIG; Dan Nathan is long VIX JUN 16/20 CALL SPREAD; Dan Nathan is short IWM; Dan Nathan is long CAT JUN 87.5/80 PUT SPREAD; Dan Nathan is long IBM JUN 205/295/285 PUT FLY; Dan Nathan is long JNJ JUN 87.5 PUTS; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long BAC; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long MS; Anthony Scaramucci is long WMT; Anthony Scaramucci is long GOOG; Josh Brown is long VAW; Josh Brown is long F; Josh Brown is long IEO;

For Francisco Blanch
BofA Merrill Lynch Research personnel (including the analyst(s) responsible for this report) receive compensation based upon, among other factors, the overall profitability of Bank of America Corporation, including profits derived from investment banking revenues; BofA Merrill Lynch Global Credit Research analysts regularly interact with sales and trading desk personnel in connection with their research, including to ascertain pricing and liquidity in the fixed income markets;

For Craig Johnson
Analyst Certification—Craig W. Johnson, CFA, CMT, Senior Technical Analyst; The views expressed in this report accurately reflect my personal views about the subject companies and securities referenced in this report. In addition, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report; Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.

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