NASDAQ article ”5 Ultra-Safe Stocks to Counter the Worst Sell-Off in
NASDAQ article ”5 Ultra-Safe Stocks to Counter the Worst Sell-Off in 5 Months”
posted Mar 22 '17 by alex
“The Wall Street's relentless Trump rally is poised to finally take a breather as almost 34% fund managers say that stocks are "overvalued", according to a Bank of America Merrill Lynch survey. This was the highest number of fund managers saying that stocks are overrated in the 17-year history of the survey, which polled 165 such mangers controlling $500 billion in assets.
An increasing number of market insiders have raised concerns about the elevated levels of popular valuation metrics. The S&P 500 is currently trading at 17.9 times forward earnings, the highest P/E ratio since 2004 and well above the five-year average of 15. Even Carl Icahn, a special advisor to Trump, said that he is worried that the market "has run ahead of itself". He acknowledged that the Trump rally, which pushed the Dow up 2,400 points since the election, is based more on expectations than fundamentals.”
Read full article here:
5 Stocks mentioned in the article are:
Preferred Apartment Communities, Inc.
Big 5 Sporting Goods Corporation
Magic Software Enterprises Ltd.
Tyson Foods, Inc.
Acme United Corporation
Due to this market setback, investors should build a strategy on low-risk assets and a combination of parameters that lead to better returns. The best way to go about doing this is by creating a portfolio of low-beta stocks, which are inherently less volatile than the markets they trade in. In this case, a low beta ranges from 0 to 1. These stocks also boast a Zacks Rank #1 (Strong Buy) or 2 (Buy).