Market Trembles, But Opportunity is Still Knocking in These Stocks
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Things got a bit hairy in the stock market last week.
The Dow Industrials tanked more than 200 points at one point last Thursday on news the Senate might push out corporate tax relief. The Dow Transports fell below 9,500, giving up all the gains they had racked up since mid-September. And the long-slumbering VIX index jumped from 9 to over 12. Coming off such a low base, that’s a big spike of 33%!
Not only that, but we also saw parts of the debt market crack. ETFs that track higher-risk bonds fell sharply, with the SPDR Bloomberg Barclays High Yield Bond ETF (JNK, Rated “B-”) dropping to its lowest level since March.
My colleague Sean Brodrick and our company founder Martin D. Weiss have been telling you to expect debt market turmoil, as I detailed last week. That forecast is clearly panning out.
Now, they’re about to host a follow up “Supercycle Investment Summit.” It will cover their forecasts and best recommended investments in more detail. Make sure you click here and register to attend.
Meanwhile, despite the debt market’s issues, opportunity is still knocking in select stocks. That’s because we’re seeing a tidal wave of foreign money … originating in riskier countries and markets … washing up on our shores. It’s seeking a safer, more liquid haven (not to mention bigger profit opportunities). Blue chip, lower-risk, more fundamentally sound U.S. stocks provide exactly that!
Sean and Martin are going to talk about their favorites, as well as other ETF investments that are tailor made for this environment, in that summit. So again, make sure you register to see it here.
In the meantime, make sure you stick with only higher-rated, more fundamentally sound stocks. Our proprietary Weiss Ratings can help you find the best and get rid of the rest, so make sure you check out our Stock Screening tools here.
When it comes to sectors, I’m still a fan of those that have performed very well in the past year. That includes materials, industrials, financials, defense, and technology. And of course, I still love higher-yielding stocks and other investments. They won’t only help you build wealth. They’ll also help cushion your portfolio against rising volatility and turmoil, not to mention unexpected market surprises.
Until next time,
Mike
ETF Spotlight Edition, by Mike Larson, Senior Analyst Mike Larson is a Senior Analyst for Weiss Ratings. A graduate of Boston University, Mike Larson formerly worked at Bankrate.com and Bloomberg News, and is regularly featured on CNBC, CNN, Fox Business News and Bloomberg Television as well as many national radio programs. Due to the astonishing accuracy of his forecasts and warnings, Mike Larson is often quoted by the Washington Post, Chicago Tribune, As-sociated Press, Reuters, CNNMoney and many others. |