#7 - The Traveler’s Companies (NYSE:TRV)
The last of the risk-off stocks on our list is The Travelers Companies (NYSE:TRV). Although insurance stocks can be affected by external events particularly due to acts of nature, everybody needs insurance. That’s what makes insurance stocks among the steadiest performers in the market. And TRV stock fits that description.
In the last 12 months, the stock has delivered 1 14% return. But over the last five years, that return jumps to 39%. And investors have enjoyed an even higher total return with a dividend that the company has increased in each of the last 20 years.
Of all the stock’s on this list, this is the only one that a consensus of analysts followed by MarketBeat lists as a Hold. However, as investors look for stocks to hedge against risk they could do worse than to look at a stock that has over 82% institutional ownership.
About Travelers Companies
The Travelers Companies, Inc, through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.
Read More - Current Price
- $262.40
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 14 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $251.15 (4.3% Downside)
The classic definition of a risk-off market is one in which investors flee to safe-haven assets like bonds or gold. There’s no evidence that is happening in a large way. Stocks continue to be the place for investors to find growth. But many analysts are using the phrase risk-off to describe a change in risk tolerance. And this is typified by a shift from growth stocks to value stocks. That is a more apt description of what’s occurring in the market today.
Investors are becoming uncertain of economic growth. What affect will interest rate hikes have on corporate earnings? What will the mid-term elections mean for monetary and economic policy?
Let’s give credit where credit is due. Many retail investors have done a great job of playing offense during this bull market. But many of those same investors have never experienced a bear market of any consequence. It’s time to play defense, which simply means it’s time to reassess your level of risk. And as you do, stocks such as the ones in this presentation can help your portfolio weather whatever comes next.
More Investing Slideshows:
