The 5 Scariest Stocks to Have in Your Portfolio
Michael Shulman, October 31, 2009
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I want to tell you about five of the scariest stocks out there -- stocks to avoid at all costs.
The market crashed for good reason -- the financial system was on the verge of a Great Depression-type meltdown, and the economy was quickly following. For technical reasons, and because of the vast amount of liquidity the Federal Reserve and U.S. Treasury has injected into the market, we've seen a huge rally since March. The Street wants to see real growth next year, but it will be disappointed. (See 10 Reasons the Economy Will NOT Recover in 2010).
And when the fundamentals catch up -- i.e., when the Street starts to evaluate companies based on the assumption that the massive injections of liquidity are winding down -- the five names I'm about to list will be some of the worst stocks to own, because their fundamentals in no way support their inflated prices.
Keep reading for five of the scariest stocks out there.
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