The stock market is now trading at its highest valuations in 20 years, and adjusted for economic fundamentals, we’re in the largest bubble in US history. Yet even in this speculative mania, prudent long-term investors can find attractive opportunities including 13 blue-chips that offer
- an average yield of 4.6%
- long-term consensus growth of 5.7% (about 3X the rate of expected inflation)
- 11% discount to fair value
- 34% lower volatility than the average company
- 4X the market’s expected long-term probability-weighted total returns
Over the past 26 years these high-yield, low volatility blue-chips have outperformed the market by 15% annually, while delivering 18% lower volatility, and 51% superior risk-adjusted returns. And from current valuations, they are expected to continue to be a source of generous, safe, and growing income, as well as market smashing returns, even with all the risk factors facing us today.