5 Worst Stocks Investors Should Stay Away From Right Now
Zacks Investment Research | Jun 08, 2016 11:06PM ET
Currently, commodities are rallying on a weaker dollar and crude oil prices are rising. Also, Fed officials are optimistic about an increase in rates soon. The overall optimism is driving stock prices higher. Notably, the S&P 500 index touched its highest closing level of the year this month.
However, is the tide really shifting or just lulling investors into a fake sense of security?
The dovish comments from the Fed Chairwoman Janet Yellen paled under the dismal jobs data for May. While 2016 may witness a rate hike, chances of it happening in the upcoming June meeting seem remote.
Though the stock market is showing signs of recovery, a slowdown in global demand and subdued consumption in the U.S. cannot be ignored. Also, deep-seated problems in China’s economy will continue to add to global woes.
The S&P 500 index has gained nearly 4% so far this year, but the growth comes after three-straight months of losses in the early part of this year. With top-line growth remaining elusive, as reflected in the first-quarter earnings season, will this gain be sustainable in the future?
In the prevailing uncertain environment, stock selection could be a tricky task. Definitely there are good strategies to pick right stocks, but it’s also important to stay away from the toxic ones.
5 Stocks to Shun
Selecting stocks to dump or stay away from could be a bit tricky. However, with the assistance of our Zacks Investment Research
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