When the Bear’s Ravaging the Averages, Look to Best in Class Stocks

Jagged daily volatility has become the rule for stocks this spring, including dividend payers backed by the steadiest of businesses. That’s historically been a classic sign the market has entered a bearish phase.

But if you have the courage, energy and wisdom to pick your own stocks, it’s hardly a sign to head for the hills. In fact, opportunities abound for both buying low and selling high.

As long-term, income-focused investors, we’re primarily concerned with the first. But with almost half CUI Portfolio companies still trading above my highest recommended entry points, there’s also opportunity to bank profits, even with the S&P 500 and NASDAQ posting bear market magnitude losses year to date.

The Portfolio section highlights my outlook for coverage universe stocks the rest of the year, along with a handful of moves you can make now to strengthen your positions. Best fresh money buys this month are Verizon Communications (NYSE: VZ) for conservative growth and income, and AGL Energy (ASX: AGL, OTC: AGLXY) for a potential double in the next 6 to 12 months.

This month’s feature article turns the spotlight once again on Communications, still arguably the cheapest essential services sector. One reason for the discount: So far only Chinese companies are cashing in on the global productivity revolution 5G networks and applications have launched.