We are entering a period of rising rates. This is a fundamental change from the modus operandi of the last decade and represents a paradigm shift for markets and investors. Therefore, volatility looks likely to stick around for some time. Accordingly, investing in low volatility stocks, which have been shown to perform just as well, if not better, than stock market indices during periods of stress, seems like a good idea. Barron’s chooses the ten lowest volatility stocks on the market, a list which includes Aflac, Coca-Cola, Loews, PepsiCo, Berkshire Hathaway, and Procter & Gamble, among others.
FINSUM: Given the ground shifting beneath investors’ feet, having some allocation to low volatility stocks seems like a wise plan.