This story was originally published here.
When markets get turbulent, it’s always a good idea to seek safe stocks to buy.
In fact, there’s no better time to invest in less risky assets than now. Consider the following headwinds: a potential “second wave” of novel coronavirus inducing panic, a potential new cold war with China, current riots and protests in America and an upcoming U.S. presidential elections, all of which are sure to be met with obscene volatility.
While some investors opt to pull their money out of the markets out of fear, the best course of action is to buy assets that move higher with volatility, or remain resilient in tough times.
Let’s dive a bit deeper into what makes each of these among the safest stocks to buy today.
Safe Stocks to Buy: ProShares Ultra VIX Short-Term Futures ETF (UVXY)
The ProShares Ultra VIX Short-Term Futures ETF isn’t actually a stock. It’s an exchange-traded fund. And while that might be considered cheating a bit for a list of “safe stocks to buy,” the fact that it’s designed to match two times the daily performance of the S&P 500 VIX Short-Term Futures Index makes it worth your consideration.
The first time I brought the UVXY to your attention was on Feb. 27, as it traded at $20. It would explode to a high of $135 on novel coronavirus fear. While the ETF has since cooled to $40.35, it could spike again on fears of a “second wave” of the virus and as we near the volatility inducing presidential election in just months.
The trade has plenty of gas. Should markets fall in the months ahead, I strongly believe the UVXY ETF could test $65 again shortly.
Editor's Note: Click here for the rest of the story.
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