In this volatile market, many investors are having trouble determining which stocks to buy and which stocks to sell. Right now, there are three major events weighing on the U.S. stock market: Libya, Japan and the steady upward march of food and oil prices amid inflation. And, frankly, some giant blue chips just aren’t positioned to avoid the fallout or capitalize on new opportunities.
These dogs include some of the biggest stocks on Wall Street — mega-cap tech stocks like Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG) make the list, as do financial sector leaders Bank of America Corp. (NYSE: BAC), HSBC Holdings (NYSE: HBC) and Wells Fargo & Co. (NYSE: WFC). Household names Procter & Gamble (NYSE: PG) and Johnson & Johnson (NYSE: JNJ) also make the list, alongside Wal-Mart Stores Inc. (NYSE: WMT) and crude oil giant BP PLC (NYSE: BP). Even Warren Buffett’s Berkshire Hathaway (NYSE: BRKB) makes my list of stocks to sell.
Here are the details on 10 mega-cap blue-chip stocks to sell now:
Blue-Chip Stock to Sell – Microsoft (MSFT)
Down 13% in the past 12 months, Microsoft (NASDAQ: MSFT) has had a tough run in 2011 as well, down 9%. Earnings are another sore spot for the computer conglomerate, as it posted a quarterly earnings decline in its last income statement, year-over-year.
Blue-Chip Stock to Sell – Berkshire Hathaway (BRKB)
Since the start of March, Berkshire Hathaway (NYSE: BRKB) has watched the value of its stock drop 3%. Warren Buffet may be regarded as the smartest investor in the business, but owning shares of his company right now may not be the smartest move for your portfolio. Maybe that’s because Buffett is always focused on the long-term, and many investors just don’t have a lot of faith in the near future.