Are We Headed Into a Bear Market?
My List of 12 Ultra Safe Stocks
And 25 Stocks to Avoid
The current stock market is unhealthy! The dramatic drop in August 2015 has been followed by lower highs and lower lows. Market volatility continues unabated, which by the way, is a clear indication that stocks have not hit bottom yet.
Corporate revenues are decreasing, and earnings are dropping. The glut of oil is causing oil prices to remain below $30 a barrel. China’s slowing economy is beginning to reverberate here in the U.S. and everywhere else. Weak balance sheets exhibited by some of the biggest banks in Europe could lead to new financial problems in Europe that could resonate here at home.
No wonder investors are bewildered!
All of these problems, or at least most of them, will get resolved in due course. However, during the next several months, while stocks heave to and fro, I advise remaining invested in the stock market, but in stocks that will remain safe in the stormy seas ahead of us.
Are We Headed Into a Bear Market?
Bear markets occur when major stock market indexes decline 20% or more from their highest point to the recent lowest point.
Since making new highs last year, the Dow Jones Industrial Average is down 12.8%; the Standard & Poor’s 500 Index has declined 12.5%; the Nasdaq Composite Index has dropped 16.9%; and the Dow Jones Transportation Average, since December 29, 2014, has plummeted 23.5%. Dow Jones Transportation Average is a lesser known index which contains 20 companies in the airline, trucking, and railroad industries, including Southwest Airlines, Ryder System and Union Pacific. Transports are in a bear market, but the other indexes and averages are not.
No one knows for sure if all of the major stock market indexes will enter bear territory. We are headed in that direction, but this market is unpredictable and could turn on a dime.
If you want to be safe rather than sorry, I offer you a few suggestions.
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Investing Safely is Critical
My ultra-safe investing approach protects your wealth and brings you double-digit returns. Cabot Benjamin Graham Value Investor uses time-tested methods, including Ben Graham’s Margin of Safety used extensively by Warren Buffett, to bring investors the best undervalued stocks in the market—and many stocks are selling at bargain prices right now.
My long-term approach features my exclusive Maximum Buy and Minimum Sell Prices, which determine at what price you should buy, and at what price you should sell.
Whether you use Cabot Benjamin Graham Value Investor as a primary source for your stock purchases and sales, or you use the Investor as a backup to double-check your decisions, you too can benefit from my tried and true low-risk approach. Stop trying to guess the ups and downs of the market. I provide my subscribers with the necessary tools to buy low and sell high time after time after time!
Invest with the best. Join my subscribers who are exceeding their investment goals.
Here’s My Advice
Not all stocks are falling. The stock prices of leading companies operating in stable industries generally hold steady during market declines. I advise investing at least 50% of your portfolio into ultra-safe stocks and ETFs. Invest in companies that meet the following qualifications:
•Strong balance sheets
•Stocks with a proven record of low volatility in previous stock market declines.
I have assembled an interesting list of companies based on these criteria (though I advise researching the companies further, though, to find the companies that fit your investment objectives). Four of the companies in the list are selling at bargain prices, and are included in my Cabot Benjamin Graham Value Investor buy list. If you would like to know which four of these stocks are my favorites, I invite you to subscribe to the Value Investor. You have nothing to lose, because you will receive my money-back guarantee. Click here for all the details.
My List of 12 Ultra-Safe Companies
Alphabet, parent of Google (GOOG)
CVS Health (CVS)
Disney, Walt (DIS)
Intercontinental Exchange (ICE)
Johnson & Johnson (JNJ)
TJX Companies (TJX)
Travelers Companies (TRV)
UnitedHealth Group (UNH)
My conservative methodology has worked very well for subscribers to Cabot Benjamin Graham Value Investor. In January, when the Standard & Poor’s 500 Index dropped 5.07%, my Cabot Value Model stocks declined only 2.71%. Thus far in February (through February 12), the Value Model has decreased 1.61%—noticeably less than the 3.89% decline suffered by the S&P 500. Over the long haul,
The Cabot Value Model has provided an impressive 1,032.7% return (20 years through January 31, 2016, not including dividends), compared to a return of 505.5% for Warren Buffett’s Berkshire Hathaway! During the same 20-year period, the S&P 500 has gained just 107.2%. Yes, I beat Warren Buffett!
And 25 Stocks to Avoid
Are some of your stocks selling at prices that are overvalued? I recently compiled a list containing the 25 largest companies in my database that are overvalued. For example, GE, Home Depot, McDonald’s and Starbucks are included in my sell list along with 21 other stocks. If you own any of these 25 stocks, you should sell them. It’s as simple as that. Just take a risk-free trial offer to the Cabot Benjamin Graham Value Investor and get this report for free. Click here for details.
Until next time, be kind and friendly to everyone you meet.
Chief Analyst, Cabot Benjamin Graham Value Investor
You can read more about ultra-safe stocks selling at bargain prices in Cabot Benjamin Graham Value Investor. In every issue, you’ll find my legendary Maximum Buy and Minimum Sell Prices for over 275 stocks plus my up-to-date predictions for the Dow Jones Industrial Average. Click here to get started today!