Ian Wyatt
Top Stock Insights
Chuck Carlson
The DRIP Investor
Jim Stack
InvesTech Market Analyst
Mark Skousen
Hedge Fund Trader

Stock up on staples


Bookmark and Share
by Joon Choi, contributing editor Systems & Forecasts

History shows the stock market, on average, loses money during the June through October period.  The question is where one should aim to invest to profit during this unfavorable season. 

Although consumer staples, utilities and healthcare sectors are all labeled defensive, their performance in the June-October period are not equal.  

The utilities sector has the most attractive dividend yield and return but the risk is greater than the S&P 500 Index. Healthcare sector only slightly outperforms the index with increased risk.  

The consumer staples sector does almost as well as utilities with a reduced risk of almost half, which is very significant. In addition, the dividend yield is 2.64%.  

It’s hard to predict how the crisis in Europe will pan out but if the U. S. government continues to pump up the economy prior to the election, there may be an opportunity to profit from the equity market even in the unfavorable June-October period in 2012.  

So, if you have money sitting in cash and want to put it to use but do not want more bonds, investing in the Consumer Staples Select Sector SPDR (XLP) may be the most prudent strategy for the upcoming five months.

Learn more about this financial newsletter at Systems & Forecasts.

Related articles:


Advertisement
Banner
News Flash

Split buys? HOMB and Noble Energy
by Neil Macneale, editor 2-for-1 Stock Split Newsletter

Each month, we add one stock to our model portfolio based upon those companies that have announced 2-for-1 stock splits; after a meager number of splits over the past year, we have a nice collection of six splits elect from this month.


Read more...

 

WisdomTree targets global bonds
by Mark Salzinger, editor The Investor's ETF Report

While most investors diversify the equity portions of their portfolio with allocations to foreign stocks, few diversify their bond holdings internationally. WisdomTree recently introduced the first ETF to invest in a truly global portfolio of corporate bonds.


Read more...


   

Express Scripts: Obamacare buy
by J. Royden Ward, editor Cabot Benjamin Graham Value Investor

I am attracted to healthcare stocks because the confusion surrounding “ObamaCare” has held healthcare stock prices back. I think Express Scripts (ESRX) is very likely to shine in 2013.


Read more...

 

Hodges: High conviction funds
by Walter Frank, editor MoneyLetter

Over the last two months, Hodges Fund (HDPMX) has made a strong run to the top echelons of our domestic stock fund rankings. And one of its siblings, Hodges Small Cap (HDPSX) has been within the top decline of the small blend category from 2009 through last year, and is in the top 20% this year.


Read more...

 

United Natural: A play on Whole Foods
by Mark Skousen, editor Hedge Fund Trader Alert

We’ve recommended Whole Foods Market (WFM) from time to time, and the stock has moved up sharply in the past three years, but I’d like to suggest an alternative -- one of Whole Foods’ primary suppliers, United Natural Foods (UNFI).


Read more...

 

Timing expert eyes India
by Sy Harding, editor Street Smart Report

The money flow and momentum reversals in India's Bombay Index have now been enough to trigger buy signals on intermediate-term indicators. With this new buy signal, we have added a position in the iShares India 50 ETF (INDY) to our portfolio.


Read more...

 

Value investor goes with Guess
by Charles Mizrahi, editor Hidden Values Alert

Guess?, Inc. (GES) is a holding in our special situation portfolio; its strong product quality has created brand name recognition and a loyal consumer following.


Read more...

 

MGAM: Bingo, lotteries, casinos
by Jim Oberweis, Jr., editor The Oberweis Report

Multimedia Games Holding Company (MGAM) makes innovative gaming systems for Native American and commercial casino operators in North America, lottery operators, and charity and commercial bingo operators.


Read more...

 

Fidelity expert: Bowers' bond bets
by Jack Bowers, editor Fidelity Monitor & Insight

If you’ve been worried that the bond market might take a big hit, you can relax. Indeed, while bond funds may lag stock funds over the next 5-10 years, they still have a decent shot at keeping up with inflation, and they remain an excellent way to cut risk in a blended portfolio.


Read more...

 

Tesla: 'Out of the ball park'
by Timothy Lutts. editor Cabot Stock of the Month

Tesla (TSLA), our previously featured Stock of the Month and our top stock pick for 2013, knocked the ball out of the park in its latest quarter. The company exceeded analysts' expectations on all counts: cars sold, revenues, earnings, gross margins and more.


Read more...

 



Banner



Close
Select Offer: Schwab Options Market Commentary