The only safe bets in safety stocks right now – nasdaq. com

Dow futures plummeted more than 900 points in overnight trading on November 8 as Donald Trump took key swing states and looked ready to seal the election. Grade 6 electricity unit test However, a switch went off before official trading started on the 9th. Kd 7 electricity socks The uncertainty around a Trump presidency has turned to optimism on hopes for up to $1 trillion in fiscal stimulus.

The rate on the 10-year Treasury has jumped 21% to its highest point since the beginning of the year. Electricity freedom system That rise in rates has caused rate-sensitive sectors like utilities and consumer staples to plunge as investors find better yield in bonds.

The Utilities Select Sector SPDR ETF (NYSE: XLU ) is down 2.3% and the Consumer Staples Select Sector SPDR ETF (NYSE: XLP ) is 2.5% lower since the election.

But more than seven years into the bull market, investors can’t afford to neglect stocks that can protect their portfolio when market volatility heats up. Gas unlimited houston texas Stocks may already be priced to perfection and the slightest hit to confidence in the economy could send the market tumbling.

The pain in the two traditionally safe sectors may not be over. K gas constant Plans for fiscal stimulus and inflation expectations have taken market odds of a Fed rate hike in December to nearly 100% and Chair Yellen told Congress recently that policy tightening could be “appropriate relatively soon,” citing dangers in waiting too long.

Investors are worried that government infrastructure spending and other economic policies could spark inflation as well as growth. Gas monkey live Unemployment is already low at 4.9% and increased hiring may push wage inflation up fast. 93 gas near me Not only would the Fed need to increase rates to control inflation, but it would need to raise borrowing costs as a counterweight to keep the economy from overheating.

Rising rates mean problems for safety stocks on multiple levels. Electricity vs gasoline The higher rates available on bonds means investors don’t have to reach for yield, a driver that has led to massive inflows into utilities and consumer staples over the last several years.

Higher borrowing costs also mean higher interest expense. 3 main gas laws Companies in the sectors typically carry much higher debt on relatively stable cash flows. Electricity how it works Sudden rate shocks may catch management off guard and reduce earnings.

Beyond the market selloff in bonds, there is reason to believe that inflation and rates may not rise as fast as market fears suggest. K electric company Even on the increase, inflation expectations for the next year have only moved up to 1.9%, which is still relatively low. Bad gas 6 weeks pregnant The personal consumption expenditures (PCE) index, the Fed’s preferred inflation measure, has been below the 2% target for years.

While investor sentiment and the potential for higher rates may still weigh on the broader utilities and consumer staples sectors, there are names that could provide upside surprises. C gastronomie traiteur avis These companies have stable cash flow growth and strong pricing power in the face of rising rates.

Regulated utilities could outperform their unregulated peers because they can pass costs through to consumers on rate increase approvals while unregulated utilities must sell on the open market. Electricity water analogy animation I’m also watching the ‘sin’ stocks like cigarettes and alcoholic beverages which can answer inflation quickly with higher prices.

Philip Morris International (NYSE: PM ) has plunged 8% since the election but has some of the most stable cash flows in the market. Gas cap light The company holds 28% of the global tobacco market share, excluding China and the U.S., and owns seven of the leading 15 international brands. Gas key staking tool The firm generates $6.7 billion in free cash flow annually and pays a 4.75% dividend yield.

The company was able to raise prices by 5% in 2015 and drive an 18% increase in earnings on constant-currency terms. 76 gas station jobs The global diversification across developed and emerging markets helps to protect cash flows against changes to taxes and regulation in any one country.

Procter & Gamble Company (NYSE: PG ) has tumbled 5% since the election, bringing shares to 22.3 times trailing earnings and a 16% discount to the industry average. Electricity song omd While it’s not a ‘sin’ stock, P&G has recently finished shedding more than half of its brand portfolio and the 65 remaining brands are some of the strongest in consumer staples. Gas leak los angeles Twenty-one of those brands book more than $1 billion in annual sales each and the company generated $11.5 billion in free cash flow last year.

P&G has returned an average $12.66 billion to investors annually over the last three years for 5.8% total yield. Gas prices in texas 2015 Earnings are expected 6.7% higher over the next four quarters to $3.97 and the potential to send shares past $90 each.

PPL Corporation (NYSE: PPL ) dropped 5.6% after the election before recovering, but is still down 14% from the June high before the Brexit vote. Gas natural fenosa PPL is a regulated distributor of electricity in Pennsylvania and Kentucky, as well as customers in the United Kingdom. M gasol Despite the post-Brexit selloff, electricity demand should not be materially affected and upcoming quarters could calm investor fears.

Shares trade for 12.2 times trailing earnings for an 11% discount to the industry average and pay a 4.7% dividend yield. Gas hydrates are used The Bank of England cut rates to a record low of 0.25% in August and introduced stimulus to counter any economic effects of Brexit. Gas prices going up to 5 dollars This should mean cheap borrowing costs and continued electricity demand for the company’s international segment.

Even if stimulus on new fiscal policies comes with higher inflation and interest rates, these three names should be relatively safe and even provide upside. Electricity lesson plans year 6 If inflation and rate expectations fail to materialize, these three best-of-breed stocks could surge along with their sectors.

Action To Take: Take advantage of the recent selloff in utilities and consumer staples to buy best of breed names like Philip Morris International, Procter & Gamble and the PPL Corporation.

Editor’s Note: What better way to get on the ” millionaire track ” than investing in companies owned by millionaires who also happen to write the law. Electricity edison In this special presentation you’ll get the names and tickers of several of Congress’ favorite stocks. Thitima electricity sound effect Details here .