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

Crash-Proof Your Portfolio With These 5 Sin Stocks

BALTIMORE (Stockpickr) -- Want protection from downside risk in 2014? Bet on peoples' vices.

>>5 Hated Earnings Stocks You Should Love

Stocks are pressing up against new highs this morning, with the S&P 500 index up more than 5.6% since the calendar flipped over to February. That's on top of the 32% total returns that the big index gave investors last year -- and the 91% cumulative returns since 2009. Put simply, this market has been an equity investor's dream for the last five years.

Must Read: 4 Stocks Under $10 Moving Higher

That's exactly why it makes sense to play a little defense in 2014.

To do that, we're turning to a new set of "sin stocks" that could crash-proof your portfolio this year. Don't let the name fool you; sin stock companies aren't in the business of burning down old folks' homes. Instead, alcohol, tobacco, gambling and weapons firms are all classical examples of businesses that qualify as sin stocks.

The important benefit to sin stocks is that they don't just protect downside. Many of them offer upside growth when markets are frothy and consumer takes move up the value chain. That's why recession-resistant revenues and sticky customer bases are the norm. The devil's in the details with sin stocks; because these firms generally sport wide economic moats and deeper margins than traditional consumer plays, sin stocks benefit from an extra qualitative boost that you can't find in any other group right now.

>>Must-See Charts: 5 Breakout Trades From the Tech Sector

To be fair, sin stocks won't completely crash-proof your portfolio. No stock can do that. But they do offer a very attractive mix of defense and offense right now, which is more than most investment strategies can offer in 2014.

Without further ado, here's a look at five sin stocks that could outperform in this market.

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

Check Out Our Best Services for Investors

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
BA $134.80 -1.66%
MO $62.19 1.04%
SAM $155.41 -0.68%
STZ $155.58 -0.68%
WYNN $89.17 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs