When the Going Gets Tough, Income-Focused Strategies & Investments Shine

10/30/2020 4:00 am EST

Focus: ETFS

Mike Larson

Editor, Weiss' Safe Money Report

The markets got walloped on Monday, with the Dow plunging more than 900 points intraday before closing off 650. The S&P 500 (SPX) shed 1.9%, its sharpest decline in more than a month, states Mike Larson of Safe Money Report.

Equities suffered thanks to the double whammy of rising COVID-19 cases and fading hopes for a new federal stimulus deal. Neither is going away soon, and election uncertainty will likely just make things worse. That’s why the selloff continued into Tuesday and Wednesday’s trading sessions.

But you know how much my favorite, income-focused sector ETF “plunged” by on Monday? Two cents…a “whopping” loss of 0.03%.

Another “Safe Money” ETF that I like gave up only around half as much as the S&P. That widened its one-year outperformance gap with the average even further.

And the SPDR Gold Shares (GLD) I’ve talked about endlessly since the bullion bull market began in 2018? It barely budged, down 11 cents.

What’s the common thread here? Why do these kinds of investments in sectors like utilities, health care, and precious metals hold up better in times of turmoil...while still doing quite well in times of calm?

They offer INCOME and/or SAFETY!

In an ultra-low (or in today’s case, effectively 0%) interest rate environment, investors need income. They need yield. They need protection from the ravages of nonexistent rates on their monthly or annual cash flow.

Throw in a slumping US dollar PLUS inflation for things like food and health care we can’t go without and you know what? It’s no wonder strategies that keep you ahead of the game are so wildly popular—and powerful.

My advice? Make sure you don’t abandon the Safe Money investing principles and strategies I’ve been advocating. This week’s volatility is just the latest evidence that market conditions remain in flux.

Next week’s election—and any potential post-election turmoil—could only make a bad market problem worse...and the thirst for income and safety even more intense!

Safe Money Report focuses on these kinds of stocks, which include names in the consumer staples, food and beverage, retail, and health care sectors. Visit Safe Money Report here…

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