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In his latest research note, JP Morgan's Tom Lee says he is remaining cautious on stocks due to higher taxes, rising gas prices and the sequestration budget cuts.
Lee has put together 15 stocks that could leave investors insulated to any oncoming volatility. Here's what makes them unique.
"Interestingly, in the last 11 5%- pullbacks since 2009, this group of 15 stocks outperformed the S&P 500 8 of the 11," wrote Lee. "In other words, these names provide exposure to a portfolio of US stocks that could be seen as relatively safe, even in the anticipation of a pullback."
The screening criteria: less than 15 months of both a) negative monthly absolute performance, and b) relative monthly underperformance (vs SPX) of more than 150bps. And, the largest monthly relative underperformance (since 2009) is no greater than 8 percent.