“Bet Boring” to Beat an Unruly Market

For most stocks, it’s been a rough start to the final month of 2015.

December brought nothing but lumps of coal for investors hoping for a boost to retail names. The S&P retail index dropped another 2% yesterday, further solidifying a nearly 6-month downtrend. Bah Humbug!

The only retail stock that’s getting into the spirit of the season this year is Amazon. The market’s biggest e-tailer is once again flirting with all-time highs this week…

But Amazon isn’t the only stock getting a boost from consumers. You just won’t find many of the names at your local mall. If you’re looking for consumer stock gains right now, you’re going to have to check the shelves of the grocery store…

That’s right—consumer staples are stealing the show this season. These boring stocks are pushing new highs while retailers are stuck in the mud.

And if you want some nice safe gains in today’s market, I’m about to show you how to get ‘em…

I’ll be the first to tell you that canned soup, cola, and cleaning products are about as boring as it gets. But these boring stocks are at or near their highs right now—and producing incredible gains for anyone willing to ignore all the noise about the Fed or oil prices from the idiot box…

Just look at these moves:

Market Leaders from the Kitchen Pantry

Hormel Foods is up a staggering 55% year-to-date. Not bad for a company known for its canned chili. Along with Hormel, you’ll see that Clorox, Campbell’s Soup, and Coca-Cola are all up double-digits since September 1st.

As a group, consumer staples are a market leader. The Consumer Staples Select Sector SPDR (NYSE:XLP) is up more than 6.5% in 2015. Compare that to the retail index. Despite high-flyers like Netflix and Amazon trying to prop it up, the retail index is down nearly 9% on the year.

These consumer staples names are typically considered defensive stocks. But right now they’re playing offense in a big way…

So don’t be afraid to get a weeks worth of sodium from some canned soup and a sugar rush from your favorite carbonated beverage this holiday season. With much of the market in flux, these boring stocks are helping traders find an edge in a very unlikely place.

My favorite boring consumer play right now is Clorox (NYSE:CLX). CLX ticks all our boxes. It’s a boring, household consumer name. And it’s strong while the market has been weak. In fact, CLX even managed to sneak up to new highs yesterday while most stocks (including those in the consumer goods sector) languished in the red.

Also, it’s important to note that Clorox isn’t just in the bleach business anymore. This company has an impressive portfolio of brands ranging from Hidden Valley salad dressings to Kingsford charcoal. You probably have a Clorox product in every room of your house—you just didn’t know it.

During this season of market turmoil, boring is your best friend. Grab shares of CLX today to help prop up your portfolio in a difficult trading environment…


Greg Guenthner
for The Daily Reckoning

P.S.  If you want to cash in on the biggest profits this market has to offer, sign up for my Rude Awakening e-letter, for FREE, right here. Stop missing out. Click here now to sign up for FREE.

You May Also Be Interested In:

Greg Guenthner

Greg Guenthner, CMT, is the editor of Opening Bell Fortunes and Seven Figure Signals. He has been with Agora Financial/Seven Figure Publishing since 2005. In 2019, the average position in Greg’s Sunrise Fortunes portfolio outperformed the S&P 500 by 1.65x.

View More By Greg Guenthner