Over the last week or so we’ve seen market volatility (as measured by the CBOE Volatility Index, or VIX) go from a reading of just under 19 to as high as 28.5 in a matter of days…
When the VIX is under 20, it’s a general indication of a “stress-free” stable market. Investors are calm, confident, and looking to buy or hold stocks on the rise.
But when the VIX kicks above 20, investor confidence has waned and selling has picked up. And when the VIX breaks above 30, the market is considered to be highly volatile.
When investor fear is high, riskier investments are often sold off in an attempt to play defense against future uncertainty… so when the VIX came within reach of 30 on Monday, many investors panicked.
Most people can’t stomach that type of volatility. They usually buy stocks at the top on FOMO (fear of missing out)… and sell at the bottom on FUD (fear, uncertainty, and doubt)…
That’s a recipe for losing money and sleep, like in this week’s market.
And maybe a little extra FUD was baked into this week since we’ve had a historically calm year in 2021. For example, the S&P 500 has posted a positive return for the last seven straight months. And it has done so with bond-like volatility.
Now, I understand why some investors might be a little fearful today…
The COVID pandemic is dragging on… inflation is on the rise… China’s largest real estate group is on the verge of bankruptcy… and Congress is debating whether to raise the debt ceiling.
Any of these issues could send stocks tumbling.
But what if I told you there’s a strategy that protects your portfolio during crashes and outperforms during rallies…
Or that there are stocks that don’t drop more than 10% in bad years (or any year for that matter)… And that return over 12x the market over the long term.
A strategy like that would insulate your portfolio from events like a pandemic, inflation, economic meltdown, or sudden volatility… and make you double-digit gains when the market rebounds.
You wouldn’t fall victim to FOMO or FUD, and you’d be able to sleep at night.
Today, I’ll tell you what that strategy is – and how you can profit from it.
The Untouchables Strategy
At PBRG, we call it the “Untouchables” strategy, and there are two reasons why…
First, whether the VIX is at 13 or 30… you’ll never want to touch these stocks in your portfolio. And second, nothing can touch their performance.
Not only do our Untouchable stocks outperform the market over the long term, but they’re also unaffected by extreme drops like the ones we saw when the market ended the year down 37% in 2008 and 22% in 2002.
To find these exceptional stocks, we studied the two major bear markets over the last two decades…
And we combed through 19,000-plus publicly traded stocks in North America using multiple data subscriptions that cost over $50,000 per year combined.
What was the goal? To spot stocks that won’t suffer during significant drawdowns in the market while also easily outperforming over the long term.
In the end, only 13 stocks made the cut.
These “bulletproof” investments stayed afloat even in the worst downturns. The Untouchables strategy cranked out positive returns in the worst calendar years over the last two decades (and all 21 calendar years).
Take a look at how our strategy performed:
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It was up 26.4% in 2000 when the S&P 500 was down 9.1%.
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It was up 20.1% in 2001 when the S&P 500 was down 11.9%.
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It was up 12.6% in 2002 when the S&P 500 was down 22.1%.
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It was up 3.9% in 2008 when the S&P 500 was down 37%.
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It was up 12.6% in 2018 when the S&P 500 was down 4.4%.
But what about making money over the long run?
As you can see below, the Untouchables not only outperformed the market… they also outperformed investing legends like Warren Buffett, Carl Icahn, and Prem Watsa.
In that same 21-year period, the S&P 500 had a cumulative total return of 283%. Meanwhile, the average Untouchable returned 3,419% – more than 12x the market – over the same span.
That’s why you’ll never want to touch these stocks.
Bulletproof Your Portfolio With the Untouchables
Over the past year, we’ve seen how a pandemic crisis and rising inflation can roil the markets…
So there’s no better time to bulletproof your portfolio with Untouchables.
Here’s Daily editor Teeka Tiwari…
This ignored class of stocks not only delivers steady gains… they’re also bulletproof. Since 2000, the Untouchables haven’t seen double-digit losses in any year… Including during the Great Recession of 2008. In short, the Untouchables are safe and they can deliver 12x more gains.
If you want to find Untouchable stocks yourself, they share five key traits:
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They have simple business models.
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They pay dividends.
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They have ultra-low volatility.
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They produce positive returns when the broader market declines.
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And they outperform the market over the long term.
One example of an Untouchable is Johnson & Johnson (JNJ).
It’s broadly diversified through three key business lines: consumer products, pharmaceuticals, and medical devices. And it yields 2.6%.
On top of that, the company now trades near its all-time high of $179.92… up nearly 50% from its March 2020 pandemic bottom.
And as an Untouchable, the company has a history of outperforming when the broader market falls…
In 2000 and 2001, JNJ ended the year 14% higher, while the S&P 500 ended the year down 9% and 12%, respectively…
And in 2008, when the S&P 500 ended the year down nearly 40%, JNJ was only down about 8%.
If history is any guide, Untouchables like JNJ are the types of stocks that’ll do well, no matter where the market is headed… even during the kind of volatility we’ve seen this week.
To sleep better at night, make sure you bulletproof your portfolio with Untouchables. They’ll profit in the good times… and protect you in the bad.
Regards,
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Grant Wasylik
Analyst, Palm Beach Daily
P.S. There is another investment strategy that has even less volatility than the Untouchables with considerably more upside. I’m talking about private equity – or pre-IPOs.
An IPO – or initial public offering – is when a company lists on an exchange like NYSE or Nasdaq. So a pre-IPO is a company that’s still private.
This market can be wildly lucrative. According to one study, “private” market investing has made almost four times the return of “public” market investing over the last two decades.
And now, you have a chance to get in on one of these deals…
Teeka just announced his newest urgent buy alert – a chance for you to get in on a pre-IPO deal with a billionaire.
This billionaire has 11 pre-IPO deals under his belt. And the gains are mind-bending: 12,400%… 18,200%… even an astronomical 460,000%. (You can see his full track record here.)
He’s just announced deal No. 12, and this time you can get in on it, too…
Teeka will reveal how on Wednesday, October 6, at 8 p.m. ET. Click here for details.
The last time Teeka made a pre-IPO recommendation at an event like this it filled up in just 12 hours. And Teeka believes this deal could go even quicker. So RSVP now.