We’ve already seen a 10% pullback in U.S. stocks. Since 1950, that’s happened 28 times. That turned into a 20% loss 9 times, and a 30% loss just 5 times (in 66 years). The odds are against a 20% loss – and if it happens, we’re more than halfway there (13% off last summer’s highs). Of course that doesn’t mean it can’t happen. But there are better ways to manage risk and protect capital than to sell when a decline is losing steam.
Rising markets usually need climb a “wall of worry” – and the proper concerns are now in place. While these indicators aren’t absolute guarantees of a market rally, they do show us that we’re probably closer to a short-term bottom than not. Which means now’s the time to go shopping for contrarian income – and use the Opullback to load up on sizeable dividends that are safe (and preferably, likely to grow): over the last five years, Ventas (VTR) investors have been rewarded with quick double-digit returns. HCP (HCP) has exhibited the same “mirror image” between yield and price. You want to buy it when it’s paying 6% or better. Same deal with Welltower (HCN) – it’s a buy when it pays 5% or better.
Source: InvestorPlace
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