American Consequences - June 2019

The table to the right shows how each segment performed during the last two bear markets... from the market peak to the market bottom of each market. It’s easy to see from the data that investing in consumer staples is prudent when facing a bear market... It was the only sector that delivered a positive return during the 2000

PERFORMANCE OVER PAST TWO BEAR MARKETS

S&P 500 by Sector

2000-2002 Bear Market

2007-2009

Average Past

Bear Market Two Bear Markets

Consumer Staples

24% -7% -18% -25% -48% -26% -38% -25%

-31% -40% -47% -60% -46% -58% -75% -65% -83% -51% -53% -57%

-3%

Health Care

-23% -33% -42% -47% -50% -50% -52% -54% -62% -68% -53%

Energy

Materials Utilities

Consumer Discretionary -41%

Real Estate Industrials Financials

Communicaton Services -74%

Information Technology

-82% -49%

S&P 500 Index

demand, in good times and in bad. Some items – like beer, wine, and cigarettes – even see increases in demand during recessions. Bear markets can hit faster than you realize... But if you prepare, you can play offense while the rest of the world is playing defense. next few years. It’s called The American Jubilee , and it explains much more about America’s biggest problem today... and what you MUST do to survive and prosper in the years to come. We can send you a hardback copy of it for $5. Bear markets can hit faster than you realize... But if you prepare, you can play offense while the rest of the world is playing defense.

to 2002 bear market, earning 24% from the market’s peak to trough. Investors in every other industry lost money. And during the last bear market, consumer- staples stocks fared best again. No sector was spared during that downturn... But investing in consumer staples would have protected more of your wealth than any other sector. The reason is simple. Consumer-staples stocks sell the everyday items that we all need... milk, bread, toothpaste, medicine, toilet paper. Even in recessions, people don’t stop buying these items. Their products remain in A note from Austin: Porter Stansberry, founder of Stansberry Research has done more work on this subject than anyone else in the financial industry – and he's just finished what could become the most important book in America over the

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June 2019

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