After soaring to record highs following the presidential election, the market has started to cool, as frustration over President Trump’s ability to forward his agenda, and tensions regarding North Korea’s nuclear program have weighed on the market.
The one thing the market hates more than anything is uncertainty, and there is a lot of that in the market at this time. With some of President Trump’s early legislative attempts failing, there is now concern that the republicans will struggle to make any progress with tax reform, which has been a big factor in the market’s post-election rally.
Tax reform will not be easy, and when you add the potential for failure on that measure with the North Korea situation, and the general unpredictable nature of Trump’s administration, there is definitely reason to worry about the market giving back some of its post-election gains.
Should the occur, and the market does indeed trend lower through the latter part of the year, you want to make sure you have your money in stocks that have the best chance of outperforming the overall market, even if that means they simply lose less than the overall market.
In order to better your odds at this, you want to look for stocks that have low volatility readings, which we can find by looking for stocks with betas under 1. This indicates the underlying securities react less than the general market, so when the market trends lower, they should lose less ground.
Here are five stocks with low volatility readings that you may consider just in case this uncertain market turns south.