As a result of a big shift in Fed policy, we’re going to see a lot more volatility in 2019, more than we have in many years, cautions growth and income expert Mike Larson, editor of Safe Money Report.
For investors, that means you have to play defense, not offense. Out go stocks in sectors like financials, transports, industrials, technology and materials. In go consumer staples, utilities, and select REITs.
You should also carry much higher levels of cash. And, if you’re comfortable using them, hedge against downside risk by trading inverse ETFs.
As for traditional investments, one less-volatile, decent-yielding company in a more stable sector worth considering is The Clorox Co. (CLX).
I’m sure you know the Clorox brand name, and many of this company’s products — from bleach to counter wipes to toilet bowl cleansers. What you may not know is that it pays a 96-cents-per-share quarterly dividend. That was good for a market-beating 2.4% dividend yield recently.
You may also not know Clorox has raised that dividend at a 6.6% annual rate in the last half-decade. And you may not be aware that CLX was upgraded back to "buy" territory in August by our Weiss Ratings system.
What else do I like about the stock? It’s in the defensive consumer staples industry, exactly the kind of sector that’s still worth targeting even in a more challenging market. It just reaffirmed its full-year sales forecast.
And despite reporting slight margin pressures from higher manufacturing and commodity costs in the most recent quarter, the stock quickly reversed early losses that day. It then kept on going and hit fresh all-time highs.
