Don’t Fight the Fed: Buy Some of These 20 Blue Chip Stocks Instead!

Posted by Lorimer Wilson

The herd continues to stampede into U.S. Treasury debt of every possible maturity to, theoretically, avoid risk. Yields on AA+ 10-yr bonds can be locked in to yield 2.11% per year and you get your principal back in 10 years. As we see it, though the only justification for such a meagre return on invested capital must be tied to the belief that a return is better than nothing given the prospects of a future depression. We believe, however, that fighting the Fed and investing like a depression is coming is not the right way to position your portfolio. Below are 20 suggestions on how to generate in excess of 2.11% returns plus strong appreciation potential with modest risk.

We can think of many stocks that will yield more than the abovementioned 2.11% and that we believe will be higher in price over the next 10 years. To refine the list down, we are using the following criteria:

1. Must be a large multinational diversified large cap of $25B+
2. Must operate as a top leader in a major industry
3. Must believe value will grow over the subsequent 10 years
4. Must yield over 2.11%

The following are our recommendations ranked by yield:

(To see the list please go to our associate site here where you can read the article in its entirety.)