2 Strong Income Picks

Focus: STOCKS

Neil George Image Neil George Editor-in-Chief, Income Publication and Products, Agora Financial

By doing a little homework, investors can find stocks whose earnings and balance sheets can weather the market’s current volatility, like these two high-yield plays, says market veteran Neil George in this exclusive interview with MoneyShow.com.

I’d like to talk to you about market risk. A lot of investors getting into the market don’t often think about the risk that they’re taking, the market risk—especially when they’re buying certain stocks and bonds.

By correlation of course, the idea that an individual stock, security, or so forth means it’s going to move more in tandem with the general market. As we’ve seen over the past several days, weeks, months, etc., there’s been a real resurgence in volatility, a lot of uncertainty.

For the average investor trying to effectively build their retirement fund, it can be quite gut wrenching to look at a 2% or 3% gain or loss on any particular day’s portfolio movements. Therefore, it really behooves the average investor to start to look to move away from having sort of that direct market risk.

So when they move away from it, what do they do?

Well most people, whether they know it or not, end up with the same sort of stocks that are the big drivers of the S&P 500 or the Dow Jones.

Whether they’re buying Exxon Mobil (XOM), Bank of America (BAC), Chevron (CVX), the IBMs (IBM), the list goes on and on, they might not buy them directly—but they’ll end up buying them through other funds.