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We knew this was coming eventually.
After months of calm and nothing but smooth sailing to record high after record high, U.S. stocks have hit a snag in recent weeks. This week was especially rough, with the S&P 500 down nearly 3%. Since hitting an all-time high of 2,011 points on Sept. 18, the benchmark U.S. index has tumbled 4.6% in three weeks.
Meanwhile, the VIX – the volatility index, a.k.a. the “investor fear gauge” – has skyrocketed. The index has spiked 45.5% in one month, reaching its highest point since February. That volatility was on full display this week. On Tuesday, Wednesday and Thursday, the S&P seesawed between downs and ups of more than 1%. Unfortunately, the downs outnumbered the ups.
With volatility back, and the uncertainty palpable, we spent most of our week at Wyatt Investment Research trying to help navigate you through the muck. Our resident options guru, Andy Crowder, explained how he not only insures his portfolio against volatility, but uses it to his advantage.
Safety plays such as dividend stocks, gold and high-yield BDCs were prominent in our coverage this week. Here’s what else was on our experts’ minds in a suddenly topsy-turvy market:
Harnessing the Power of Dividend Achievers– For 60 years, Tom Cameron has built a successful investing career on a simple income strategy. It’s called the “dividend achievers.”
Three Underdog Stocks with Top-Dog Potential– Investing in the biggest and best company can be a great way to protect against large selloffs in stocks. However, underdog stocks offer investors the best chance of beating the market.
How to Insure Your Portfolio Against Volatility– As the market gets more volatile, Andy Crowder says there’s a better way than diversification to protect your portfolio.
Two High Growth Stocks to Jump On Now– With the market’s ongoing correction, this is a terrific time for investors to keep things simple. And that means buying shares of the best growth companies in the world at a discount to their price from just a few short months ago.
Capture a 13.6% Yield with this BDC Stock– I like the BDC sell-off because it offers the opportunity to capture even higher yield. The concerns, in my opinion, are overdone. Prospect Capital Corp. (NASDAQ: PSEC) is my top BDC stock at the moment.
Why Income Investors Should Dig Into Canadian Oil Sands– Canada is often overlooked by U.S. investors given its proximity, but the Great White North has its own market catalysts and very interesting income plays that deserve a closer look.
Why You Must Adopt an Options Trading Strategy– I want to discuss the mathematics behind options and why it is the only investment tool that gives a probability of success over 50%, and in many cases, over 80%.
How to Profit from Politics in Brazil– Brazil’s elections could have a profound effect on the country’s investment prospects for years to come. Martin Hutchinson offers the inside scoop.
Three Contrarian Plays for the Months Ahead– Want to invest the contrarian way? Here are three trends some of the top contrarian investors are seeing.
VIDEO: Contrarians Reflect Market Uncertainty– Market uncertainty is palpable right now. Volatility is spiking, and stocks have see-sawed back and forth dramatically all week. No one knows for sure what might happen next. And that sentiment was on full display at last week’s Contrary Opinion Forum.
Thanks for spending time with us this week. We look forward to helping you get ever closer to your investment goals next week.