The correct answer is      (E.)  Global Telecoms

According to a recent report from Merrill Lynch (NYSE: MER), telecoms have had the lowest correlation of all sectors to the overall market. In addition, it found that international markets tend to move in tandem with the U.S., but foreign dividend payers have had only a 51% correlation with the S&P 500 over the past ten years. That means foreign dividend-paying telecom stocks are among the safest havens amid the growing economic uncertainty in the U.S.

Why do foreign telecoms have such a low correlation with the U.S. markets? Most of the firms are "incumbent" phone companies, meaning they were first established as government-regulated monopolies with exclusive rights to serve an area. Their fixed-line phone networks are expensive to build, creating high barriers to entry and giving them a huge advantage in the marketplace. Thus, no matter what the broader global economy does, these firms are sure to continue raking in the cash.

And telecoms aren't your typical, boring safe investments. Global telecoms have delivered an average of +25% per year for investors since 2002. And with +23% gains in 2007, the S&P Global Telecommunications Sector Index ranked close behind materials and energy stocks as the third-best performer among the ten S&P global sector indices.

Recognizing this potential opportunity in a rocky market, StreetAuthority editor Carla Pasternak took an in-depth look at the global telecom market and ten companies yielding anywhere from 5% to 24% in a recent issue of her High-Yield Investing newsletter. To see Carla's list, or to learn more about the High-Yield Investing newsletter, please visit this link.