Saturday, June 29, 2013

Hedge Against a Market Collapse


I think many investors are scared to death of the securities markets thus far in 2013 because of all the Chicken Little warnings voiced by the marketing people who represent certain investment newsletters or blogs. After all, it’s true that doom and gloom do outsell Sweetness and Light.
I do recognize the possibility that current blather is correct from time to time, and I don’t know the future either, so I’ve searched for a benign way to hedge a positive outlook for securities when the chatter is scary.
When searching for stocks worthy of deeper study, I first look to Value Line’s reasonably consistent gainers across the last 10 calendar years and focus on those up double digits both for average gains in the 10 years and also in terrible 2008. Examples in alphabetical order:
AZO, BCPC, EXPO, FFIN, NTES, PG, SCL, SQM, WAB. 
Also, I look to Seeking Alpha’s Top 20 Dividend Growth Stocks for 2013. Examples (same way): ADP, INTC, LMT, RTN, WAG, WM.
Thirdly, I look to Seeking Alpha’s favored ETFs (same way): DIA, EPS, IPS, PRF, RWL, SDY, SSO, XLP.
For detailed analysis of worthy stocks and funds, I look to VectorVest.com, Nasdaq.com, and other of the excellent analytical resources I’ve mentioned in my blog posts. By now, perhaps you’ve found favorites of your own.

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