This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cheap, Safe Stocks to Make Money in 2011

BOSTON ( TheStreet) -- The S&P 500 Index's decline of 4.1% in the past month has erased much of the year's early gains, resulting in a slim 2% upside through Friday, as analysts project slower corporate earnings growth and a slew of international uncertainties from Europe to Asia puts investors in defensive mode.

But that would be overlooking industries that have benefited from a shift out of riskier investments. The best U.S. investment managers are outperforming stock-market indices mainly by owning a mix of consumer, health-care and utilities stocks, along with select shares in technology and energy that are bucking trends.

The Vanguard Wellesley Income Fund (VWINX), the Sequoia Fund (SEQUX) and the Yacktman Fund (YACKX) are three large and well-known mutual funds that are on track to produce gains for this year.

Those three funds, and some others, are ahead of changes in analysts' sector recommendations. Standard & Poor's shuffled its model weightings to a more conservative stance May 17, citing "increasingly sluggish U.S. economic data," as well as slowing global economic growth and European sovereign risk, to name a few of its concerns.

Worthy of particular note, the ratings firm moved consumer-staples stocks to a suggested "overweight" allocation from "market weight" because the sector reached "all-time-high territory (in April), and we see this as a sign of technical strength."

S&P said energy and industrial shares also are "overweight," while utilities were upgraded to "market weight" from "underweight." The research firm downgraded materials to "market weight" and moved financials to "underweight," where they join consumer-discretionary stocks.

Nevertheless, S&P equity strategist Alec Young told TheStreet that his firm continues to see the S&P 500 Index rising to 1,400 over the coming year. The benchmark index closed at 1,271 on Friday after peaking at 1,362 at the end of April.

Reviewing what successful mutual fund managers are doing may provide investors clues for stocks picks. A so-called defensive portfolio has traditionally included consumer staples, health-care and utilities stocks.

Here are 10 funds that are defensive in their makeup and also have good five-year records, which means they have weathered other market slides without incurring serious damage:
1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BRK.A $215,740.00 -0.74%
BTI $119.95 -1.00%
CVS $104.17 0.24%
JNJ $112.35 -0.30%
MO $63.45 0.40%


Chart of I:DJI
DOW 17,652.67 -98.24 -0.55%
S&P 500 2,047.71 -15.66 -0.76%
NASDAQ 4,720.15 -43.0740 -0.90%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs