The markets are once again chugging along nicely, but for the first half of October things were not looking so hot. The market has proven once again that volatility is always just around the corner, and even in the best of times the market can turn on a dime.
The recent market selloff was tied to a few different issues, each of which would have been enough on its own to cause the markets a bit of panic. China's economic growth is slowing, Europe is once again on the brink of another recession, and the Ebola virus has dominated headlines for the last month.
However, calmer heads did win out in the end, and with the overall economic landscape in the U.S. continuing to improve, traders quickly moved in and pushed stocks higher. As a result, all three of the major U.S. indexes are currently sitting just shy of their 52-week highs.
At the current time, investors can breathe a little sigh of relief that the market was able to rebound so quickly, and the majority of stocks have already made back most, if not all, of their losses during the market dip. The earnings season was generally upbeat, which also helped, and consumer confidence is looking good as we move into the ever-important holiday shopping season.
With the major indices once again near record levels, it would be very easy to become complacent and assume the good times will never end… but they will. They say death and taxes are on the only guarantees in life… but I would argue stock market volatility is another guarantee. It really is not a question of “if” the market will become volatile; it is a question of “when.”
Keeping all of this in mind, let's look at a few stocks that will not only perform well in calm markets, but also provide a nice level of stability in volatile markets.