Boy, do I have some bad ideas for you…
Why should you care? Because they’ll help you make some great decisions about what to avoid in your trading and investing.
The vast majority of individual investors and traders are more concerned about doing something wrong than doing something right—finding the wrong stock is more important than finding the right one. Given the need for most everyone to preserve capital, I agree.
Here are my best “worst ideas” for 2016. Five sectors, five stocks; one per sector.
These aren’t necessarily the worst companies. In fact, since most of them are well managed and arguably the best in their sector, they’ve attracted buyers.
In short, they’re value traps.
Yes, there is value, and the companies will figure it out, but it will take a long time. During that time, your investment stands a pretty good chance of losing quite a lot of value.
Let’s take a look at the best of the worst…