Three Low-Risk Stocks Even Bears Love

This occurred when growth commanders Microsoft(MSFT Quote), Dell(DELL Quote), Yahoo!(YHOO Quote) and Intel(INTC Quote) were cut down in their prime six years ago. Despite the market hitting highs of late, they are still down 44%, 48%, 68% and 71%, respectively, from 2000 levels.

So don't let anyone con you into believing the market is in two-horned bull mode, even today, just because the small-caps and mid-caps have done well. Until the big-cap growth leaders arise from their death chambers, the bears boast, the recent two-year rally is just a head-fake in a bigger campaign.

The latest step in their war of attrition, say the bears, came with the broad-daylight assassinations of twin colonels Apple Computer(AAPL Quote) and Google(GOOG Quote). I warned you near their highs in the second week of this year that this might be coming, and I hope you paid attention.

Both are down 25% since mid-January, even as the Nasdaq Composite has advanced rather smartly, so their demise has been covered up by mid-cap platoon captains such as Broadcom(BRCM Quote) and Network Appliance(NTAP Quote).

It's important to note that Apple and Google -- which could revive at any time, like cats with nine lives -- were cut down amid a chorus of good news, not bad. Apple had just announced the sale of its one zillionth iPod, and Google's shares were rising so fast there was word it could have to add another zero to its name. Thwarting strong companies on good news is just the sort of sneaky tactic that the bears employ, as they need bubbly trading volume in which to unload their own shares, or to sell short (short-sellers borrow shares and sell them, in hopes of buying them back later at a lower price).

Beer, Gum and Chewing Tobacco

And now, finally, we may be witnessing the third step in the progression of a tilt from bull to bear. The shares of dreary old consumer-staples makers are rising like the equity equivalent of Lord Voldemort from their own five-year hibernations.