Stocks for hold Long After The Market Peak

Stocks Investment - Interestingly, the model of sector sequence over a cycle defined similarly by John Murphy and Sam Stovall says that one can often identify a very late moment in the cycle by the fact that energy and consumer staples are the leading sectors. I happen to be long and overweight several of the above, but the real message is that when the above stocks start to pull ground on the larger set you should probably sell everything down to your minimal equity allocation.

• Quality of investment stocks: Earnings growth and stability resulting in a S&P Quality Ranking of A or better
• Stability investment: Price volatility that ranks in the lowest quin tile of the S&P 500
• Performance investment portfolio: Ability to post gains long after the market peaks during the bear markets from 2000 to 2002 and from 2007 to 2009
• Income investment portfolio: Consistent annual dividend growth over the past decade

15 stocks qualify in this regard. The current market, a starting point has been determined. The stock market were to reach a final peak in the coming months. Hence the interest in identifying stocks that have the ability to perform in either scenario.

The investment stocks in this group have the following distinctive characteristics:

Becton Dickinson BDX stocks

Baxter International BAX stocks

C.R. Bard BCR Stocks

CHEVRON CVX Stocks

Costco COST stocks

Dentsply XRAY stocks

ExxonMobil XOM Stocks

General Mills GIS stocks

Johnson and Johnson JNJ stocks

Kellogg K Stocks

PepsiCo PEP stocks

PRAXAIR PX Stocks

Procter and Gamble PG stocks

Sigma Aldrich SIAL Stocks

TJX Companies stocks

Here's an oddity: two other stocks that held up much longer than the market in 2007-2009 were Berkshire and Wells Fargo. I remember very clearly both looking relatively strong as I check the market from Dubai in late 2008 - and Wells Fargo at least was in the center of the sector under attack. I think that even quite late in the collapse investors thought the collapse would leave Wells Fargo untouched. There is an argument that it did, that they took TARP with a gun to their heads, but it can be debated. Both companies came out of the collapse in much stronger relative position in any case. In 2001-03 Berkshire actually rallied, but the world had written Buffett off as senile when he criticized dot coms and valuations.

These securities are a national pastime and one or more should be in a portfolio to balance out stupid investing ideas - and we all have them.

What is so pointed and obvious is that the majority of your selection have p/e lower than seven years ago. (Thanks for pointing that out, sometimes we forget to take into consideration the obvious.)

Combine that fact with the fact that their share price in some cases is significantly higher than seven years ago means that these securities are more than defensive and should be accumulated in any dip or downturn.