5 ‘Pickpocket Investments’ To Watch Out For

These kinds of companies will steal from your nest egg

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youngInvestorsB.pngFor investors new to the game, juggling the charts, economic data and earnings of stocks can be a daunting task — and it’s hard to stay ahead of the game, and on the look-out for trouble.

While we’ve chatted before about red flags to watch for when screening potential buys or current holdings — including delaying filings and earnings misses — unfortunately, the list goes on.

There are a few distinct classes of investments that almost always are trouble for your portfolio, even though they may not be obvious trouble spots. I like to call these investments “pickpocket investments,” because oftentimes you don’t know you’ve been had until you go for your wallet … then realize it’s too late.

To help reduce your risk and protect your holdings, here’s a detailed description of five types of investments I think could cause serious damage to investors who aren’t on their guard: dividend cutters, low-volume stocks, dumpster dives, high-frequency trading targets and fashionable investments.

Let’s take a look at each group.

 
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Article printed from InvestorPlace Media, http://investorplace.com/2013/07/5-pickpocket-investments-to-watch-out-for/.

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