I want you to think about your very first reaction when you flick on the TV and see the Dow has crashed 300, 500\u2014even 800 points. It feels like you\u2019re drowning, right?<\/p>\n\n\n\n
It\u2019s physical, like a gasp after falling into a cold lake. Your first instinct is likely to reach for the closest \u201clife preserver.\u201d For most folks, that means panicking and flipping holding after holding over to cash.<\/p>\n\n\n\n
You\u2019ve probably made this mistake. You might\u2019ve made it last Christmas, when many investors, burned by last year\u2019s selloff, threw in the towel \u2026<\/p>\n\n\n\n
\u2026 just in time to miss the 18% total return stocks have delivered since!<\/p>\n\n\n\n
That\u2019s no isolated incident. Look at the dips the market\u2019s seen on its way to a 253% return in the last decade. Clearly,\u00a0buying<\/em>\u00a0each one would have amplified your gain.<\/p>\n\n\n\n Your Best Move for \u201cPullback-Proof\u201d Gains<\/strong><\/p>\n\n\n\n Look, I\u2019m not going to suggest we plunge into an index fund like the SPDR S&P 500 ETF (SPY).<\/strong> Instead, we\u2019ll take out some \u201cinsurance\u201d on our gains by picking some of the best stocks in my favorite hunting ground for 5%+ dividends: real estate investment trusts (REITs)<\/a>.<\/p>\n\n\n\n REITs are the perfect \u201cpullback-proof\u201d plays,\u201d for two critical reasons, which we\u2019ll dive into now. Along the way, I\u2019ll reveal two attractive \u201cChina-proof\u201d REIT picks, plus two laggard REITs that could be collateral damage in the trade war.<\/p>\n\n\n\n The Fact: REITs Beat Back Downturns<\/strong><\/p>\n\n\n\n Most folks don\u2019t know this, but REITs don\u2019t fall as far as stocks in a correction, and they bounce back faster. Look at this latest pullback: the Vanguard Real Estate ETF (VNQ)<\/strong> barely missed a beat, while the S&P 500 flamed out!<\/p>\n\n\n\n The Laggards: Simon Property Group (SPG) and STAG Industrial (STAG)<\/strong><\/p>\n\n\n\n This is a great time to discuss the two REIT laggards you need to dump now, because our first one is VNQ\u2019s No. 5 holding, mall owner Simon Property Group (SPG)<\/strong>\u2014whose brick-and-mortar tenants will have to raise prices when China tariffs rise on September 1. That comes as Amazon.com (AMZN) <\/strong>keeps squeezing retailers<\/a>!<\/p>\n\n\n\n Simon\u2019s mall occupancy, by the way, continued to tick lower in the second quarter, to 94.4% from 95.1% in the first and 95.9% in the fourth.<\/p>\n\n\n\n And by the way, the REIT\u2019s 5.3% yield is a mirage\u2014it only exists because the stock cratered 30% in the last year!<\/p>\n\n\n\n Another REIT, STAG Industrial (STAG),<\/strong> might also take you in with its 4.9% monthly payout.<\/p>\n\n\n\n But I\u2019m worried about STAG, which devotes a lot of space to the slowing car business and trade-sensitive areas like logistics, containers and machinery.<\/p>\n\n\n\n So take a pass on these two and add stability (and growth) to your portfolio with \u2026<\/p>\n\n\n\n The Winner: National Storage Affiliates (NSA)<\/strong><\/p>\n\n\n\n Self-storage is a great business\u2014all you have to do is hand out the keys to the lockers and dust and sweep the place every once in a while. Self-storage REITs are also oblivious to trade and benefit from long-term trends, like baby boomers downsizing.<\/p>\n\n\n\n Enter NSA, the smallest player in the space, with 729 properties across the US and a market cap of just $1.8 billion.<\/p>\n\n\n\n But going small pays in this sector, because few folks realize NSA has one of the highest yields in the business, at 3.9%, plus the fastest dividend growth.<\/p>\n\n\n\n