With last week’s credit rating downgrade, the terrifying stock market plunge, and the steady rise of US unemployment, saying that the month of August has started off on a bad note seems like an understatement. Ominous newspaper headlines, depressing expert predictions and plunging index graphs, are all indicators of an all too familiar recession.

Expecting a new, and deeper, wave of the so called ‘double dip recession’ most investors are succumbing to their fears and selling in bulk…

With the turbulent week of trading behind us and an uncertain future before us, is selling really the right thing to do?

Absolutely not!

Though majority of investors seem to be staying away from risks by seeking security in gold and silver, the few brave souls who dare to buy penny stocks during these turbulent times, are making a killing.

Why do penny stocks work?

Penny stocks volatility can be their strength! Unlike the three main indexes, penny stocks have not been experiencing unusual stock spikes or drops. While along with most other stocks the general trend of penny stocks was downward, there have been many winners along this rocky trading path. Now its the perfect time to take advantage of the constant pendulum of penny stock price spikes and drops, and make some serious money.

Penny stocks are extremely undervalued. While this is rarely the case for penny stocks (whose prices are usually hiked up if anything), the recent weeks have shown micro chip stocks sold for rock bottom prices. Though the penny stock market can be a very scary place, there are some solid, low risk, microchip stocks out there:

Best, Low Beta Stocks from SP 500:
Hershey’s Co. (HSY)
Costco Wholesale (COST)
Autozone(AZO)
Abott Laboratories (ABT)