Your Double-Digit Gainers
The S&P 500 is up almost 300% in the past nine years and hasn’t had a losing year since 2008.
But… stocks certainly haven’t always gone up in a straight line.
In fact, in the past nine years there have been five separate corrections of 10% or more — including some pretty steep ones: -19% in 2011 and -15% in 2016.
These sell-offs have periodically tested investors’ faith in the stock market. And it’s happening again right now.
You Made It This Far Already…
Anyone who bailed out of stocks during those pullbacks missed out on some great profits. In fact, each of those pullbacks was an opportune time to invest new money.
And don’t forget that bear markets are almost always accompanied by economic recessions, and they’re nowhere in sight today. Just last week we learned the U.S. economy grew 3.5% in the third quarter!
Since the 1920s, there have been 10 bear markets (20% or worse declines), and eight of the 10 have coincided with a recession.
The two non-recessionary bear markets were during the Cuban missile crisis in 1962 and Black Monday 1987, when the stock market plunged by 23% in a single day.
Those two non-recession bear markets lasted six months and dropped by an average of 31%.
Painful… yes… but short-lived. Don’t panic. Stay invested.
Because Wealth Watch followers know even on down days they have the opportunity to use my information to score fast gains and earn real sustainable income.
Every Day Offers More Opportunity
We’ve talked about a lot of stocks in Wealth Watch. Some I like for their long-term income earning potential thanks to fantastic dividend payouts and dividend reinvestment programs.
Others I like more in the short term for specific growth catalysts.
But nonetheless, of the dozens of companies we talked about, many are up for the year, despite the recent correction. And many of those wins are double-digit gains.
Let’s look at a few examples.
First up is Church & Dwight (NYSE: CHD).
I first suggested CHD for your portfolio on Feb. 15 as a defensive way to stave off the sell-off pain. I liked CHD for its dividends, which offer a 1.33% yield and an annualized payout of $0.87. This is backed by 12 straight years of dividend growth.
Since February, the stock is up 15.75% as of a day ago, and CHD could see more good days ahead.
If volatility stays high or we see another correction, I expect a lot more money could flow into consumer staple stocks like CHD. Which would most likely boost share prices even higher.
Now let’s look at another winner I still like a lot.
Procter & Gamble (NYSE: PG). I first suggested taking a swing on PG on May 9. PG is another favorite income earner of mine. They sell everything we need from detergent to baby diapers.
They also offer one of the best dividends around. We’re talking a 3.08% yield. An annualized payout of $2.87 and 61 straight years of dividend growth.
And if you happened to act on my suggestion in May, your shares would be up over 21% for the year.
Not too shabby!
Considering the market conditions right now, PG is still a smart play for the well-diversified portfolio.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch
Editor’s note: Want to see all my other favorites income earners?
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