Popping Bubbles: 5 Trendy Stocks To Avoid
03/19/2013 12:26
The financial services industry is a great place to bounce investing ideas off of, especially during uncertain economic times. If you are looking for a good place to invest your money, a financial consultant can be of good help. Still, there are many areas of uncertainty when it comes to investing. Here are some trendy stocks that you should probably avoid for now.
Everyone knows that there are certain trendy stocks out there that are only going to be successful for a very short time. It is probably in your best interests to avoid these stocks, but identifying them is a little bit more difficult. A financial services consulting firm can help you to better determine which opportunities are going to be beneficial for you and which ones you should avoid. Here are five trendy stocks that you should probably avoid until their underlying problems disappear:
1. Apple (AAPL). Apple hit a high of about $700 a while ago, but now it is hovering around $530 per share. This is a huge decrease in an otherwise healthy company. Things will probably turn around for Apple in the future, but when this will actually happen is still quite unclear. If you want to invest in tech stocks, there are many opportunities out there, but Apple is not really the best choice at this point in time.
2. Sears (SHLD). Sears has been struggling for quite some time now, and things do not look like they are going to be changing anytime soon. There has been some speculation that Sears will be going under, but this is not likely. Still, unless you have a very firm grasp on the direction of this stock (think short sales), it’s probably a very bad idea to put a lot of your wealth into this particular stock.
3. Google Inc. (GOOG). Google has been the leader in web search engines for years now and has met with a lot of success. Still, there are some distinct problems associated with this stock. It has been very volatile for a while, bouncing up and down unpredictably. If you are looking for an Internet stock to trade, there are better choices out there. Google is likely going to be a profitable stock, but just when this progress will start manifesting again is still unclear.
4. Facebook (FB). Facebook had a lot of high hopes when it had its initial price offering earlier on in the year. It debuted at a high of $45 per share. Then, it kept dropping. The good news is that Facebook is still around and still strong. Will it ever go back up to the $40 range again? Who knows. Facebook is a great company and it’s likely that it will continue down this road, but for now it is a good idea to avoid buying their stock and waiting for it to go up in price.
5. Bank of America (BAC). The banking industry has begun to bounce back, that much is certain, but exactly how healthy banks are is still up in the air. If you look at the Bank of America’s 52-week ticker, you will see that they are at a high point right now, which is great for them, but whether or not they will keep going down this path isn’t obvious yet. There are still many hurdles for the banking industry, and a good financial services consulting agency will let you know this.
This article was written by Jennifer Nobles. Jen is a promoter of good business and solid financial advice. She believe that strong finances, possibly with the help of a financial services consulting agency, can help people tremendously and smart investing is the real path to securing a fruitful and stable future.
