One is a distributor of key products used in housing and commercial construction, with a dividend yield that’s almost double the S&P 500’s, asserts Mike Larson, editor of Safe Money Report.
Another is a Canadian-based planning, engineering, and consulting giant active in the infrastructure project business.
Still another is a familiar name in a sector that’s already seeing strong demand and product shortages...and that’s likely to get a major influx of aid from an unlikely source.
What do they all have in common? Four key attributes:
- High Weiss Ratings from our completely unbiased, data-driven grading system
- Solid, generous yields that can pad your income in a world of rock-bottom interest rates
- Direct or indirect exposure to the “Money Flood” spewing forth from Washington, and
- They’re perfectly positioned for this phase of the credit, economic, and political cycles
They also have one other common trait. They’re all hitting new highs.
My main point in bringing this up is to show that the market’s character is changing. If you change your approach in response, I believe you’ll be much happier with the results.
The averages are no longer simply being dominated by a handful of over owned, overhyped technology giants. In fact, as the Wall Street Journal just noted this week, formerly tame, Steady Eddie, relatively overlooked stocks are trouncing high-flying, popular growth names by the largest margin in 20 years!
It’s not just that, either. Look at all the supposedly sizzling SPACs and other white-hot public offerings that have been dominating the airwaves. Many of them roared out of the gate to much fanfare in February, January, and late last year. But now they’re getting left in the dust by Safe Money-style names.
Case in point: Stock #1 from my list above has risen almost 15% in the last three months. Stock #2 has gained even more—roughly 32%.
Care to guess what, say, a popular tech name like Tesla (TSLA) has done in that same time period? Would you be surprised to hear “lose 8%” as an answer? A diversified SPAC ETF called the Defiance Next Gen SPAC Derived ETF (SPAK) has lost around 4% during that same period. Even Apple (AAPL) has gone essentially nowhere.
Of course, the numbers will look different if you use different timeframes. But my point is simple. The CHARACTER of the market is changing.
At this phase in the credit, economic, and political cycles, you’re much better off zeroing in on names that are much better positioned to win now...and keep winning in the rest of 2021 and beyond.
Think yield. Think economic sensitivity. Think relative cheapness. And forget about hype!
Safe Money Report focuses on these kinds of stocks, which include names in the consumer staples, food and beverage, retail, and healthcare sectors. Visit Safe Money Report here.