High Yield Dividend Stocks With A Positive VIX

Doug Kass of Seabreeze Partners called attention to a nerve-wracking chart on Tuesday. It compares the Standard & Poor’s 500 index with the VIX index, which shows a striking parallel to low VIX and an imminently steep decline in the markets. The VIX indexes the volatility of all of the stocks in the S&P 500. That means if the S&P 500 is highly volatile, the VIX index climbs. VIX values above 30 typically reflect great volatility, while values below 20 reflect calmer markets. The VIX is at a multiyear low of 13.45. And according to this chart, we can expect a heavy drop-off any day now.

If you believe in this chart’s uncanny predictive abilities, you’re probably wondering what you can do to protect your portfolio. Use this list as a starting point for your own analysis. Do you think these high yield stocks can hedge against a drop in the market: Mercury General Corporation (MCY), GameStop Corp. (GME), Canon Inc. (CAJ), AU Optronics Corp. (AUO), Safeway Inc. (SWY) Credit Suisse Group (CS), Quality Systems Inc. (QSII), True Religion Apparel Inc. (TRLG), Mine Safety Appliances Co. (MSA) and EarthLink Inc. (ELNK).

Source: Kapitall Wire

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