Despite U.S. gross domestic product topping expectations once again and companies reporting earnings growth that’s way up, there’s still increased inflation.
It doesn’t matter where you are.
If you have your head up in this world, there’s inflation. I mean, the Federal Reserve just told us it increased 5.4% during June from the same reading a year ago.
And it has a lot of traders and investors uneasy about the future…
But because it’s my job to help you guys figure these things out, I’ll show you the best stocks to own if markets turn sour. Now, these are highly defensive stocks traders add to their portfolios during times of uncertainty, which is exactly what we have right now.
2 Stocks to Own if Markets Turn Sour
There are no ifs, ands or buts that the stock market is fragmented.
It experienced one of its worst days in months as the spread of the COVID-19 delta variant triggered a massive sell-off, increasing the bearish sentiment we already began to see in small-cap stocks.
But just in case I haven’t already made my point clear yet…
There are a number of other technical factors causing a great divide between larger market cap stocks and smaller ones — like the amount of large caps remaining bullish versus broader names.
When the market typically pulls back, highly defensive stocks rise.
That’s because they tend to rally and make higher highs, while most other names decline in fear that the market is going to trade lower.
So check out my short video below and let’s chat all about the best stocks to own if markets turn sour.
Adding these names will help you lower your volatility level and potentially balance out your exposure — especially if you’re tech heavy, which most folks are at this time.
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P.S. Small-cap stocks have the potential to rally faster than their bigger, blue-chip cousins. And yet many people ignore this sector in favor of companies they’re more familiar with.
But that’s a huge mistake.
Right now, small caps look to be on the verge of a massive breakout. In fact, they’ve already allowed me to capture impressive winners, like 118% on PFSI… 153% on DDD… and even 414% on CNE.
The key to making these returns is learning how to spot small-cap “microbursts” before they happen… and then riding that momentum as the stock climbs higher.
I’ve even agreed to show everyday traders how I find these little-known microbursts.
