Volatile markets can be unsettling for investors. One strategy that can help you navigate through such times is to select “boring" stocks. Everybody has different ways of defining boring stocks. I'll say that these are stocks that are properly valued or undervalued and show a respectable growth rate over a 1-2 year period.
The benefit of this strategy can be explained with an analogy from golf. When you're playing a challenging course, the best advice is to play within yourself. It's not the time to take chances. You're trying to hit fairways and put the ball on the green in regulation. You may not make every putt, but you're likely going to avoid a blow-up hole that can ruin your round.
In the world of stocks, boring stocks aren't likely to provide tremendous growth. You shouldn't think of these as stocks you'll want to hold onto forever. But in volatile times, they can help you stay in the market without worrying about seeing your portfolio drop by 30% or more. You may get bored watching these stocks, but once the market conditions become more favorable for growth, you'll be glad these stocks left your portfolio in the green.
Click the "Continue to Slide #1" button to view the first company.
