Best and Worst Bets in the Stock Market
The stock market offers boundless investment opportunities. But while stocks of companies all look like golden apples that will make other interest-growing investments look worthless, there are some bad bets that linger within the vast stock market. Identifying these bad bets is essential to positioning your investment portfolio in the right direction. Here’s some of the best and worst bets you can buy into.
Worst Picks
LFC. The past year has been brutal to the Chinese stock market. One of the victims of this economic turmoil being experienced by the People’s Republic is China Life Insurance. The stock has incurred up to 30 percent in losses from its mid-year highs. What’s even worse is the fact that the selloff on Chinese equities is far from over and a steeper decline is to be expected throughout this year.
GS. Goldman Sachs’ stock price has been soaring lately. However, the overall price pattern playing out from a much bigger scale seems to suggest a sharp decline in the near future. The descending triangle setup is expected to test the $205 handle and a break below this point can snowball into large losses for the investment bank.
Best Picks
EGRX. Despite the company’s startup-ish size, with employees between 11 to 50, Eagle Pharmaceutical, Inc. is a great bet for stock market investors. Just last year, the company’s stock was trading at $15.50. Today, it moves around the $80.00 price level. The company is also poised to launch a variety of pharmaceutical breakthroughs this 2016, which may further add fuel to the already skyrocketing stock value.
SPW. Situated in North Carolina, SPX is a leading manufacturer of parts and products related to the energy, food, and industrial sectors. SPX is notable for its Flow Technology, which, as the name implies, are products geared towards the processing, blending, and transporting of fluids. Their technology’s application remains limitless and is bound to make great profits.
The Verdict
Investing in the stock market will always involve risk, regardless if you’re betting on the best company stocks or shorting the worst. As a smart investor, study the ins and outs of the company sector and manage risk at all times. When these two factors intersect, even the worst performers have minimal effect towards your capital while the best performers can have amplified effects towards your profitability. If you’re a beginner, stick with company brands you are familiar with and use on a daily basis.
Jonah Engler is a financial expert from NYC.
