Expect a 1929-Style Disaster? Here are 3 Stocks to Sell

These 3 stocks may be overvalued, so now is good time to sell

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Expect a 1929-Style Disaster? Here are 3 Stocks to Sell

Tesla

Tesla185 150x150 Expect a 1929 Style Disaster? Here are 3 Stocks to SellElectric car maker Tesla (TSLA) had all the momentum in 2013. That was when the chart comparison to 1929 signaled smooth sailing. It was just that for Tesla until a series of car fires took the wind out of the sails. As if on cue, the company has rebounded from that PR hit.

Now the stock is near its all-time high. That’s not a good place to be if the market is going to crash. Don’t get me wrong, I like the idea of Tesla, but I just wouldn’t own the stock today. Shares are quite expensive relative to expected profit growth. Analysts expect the company to grow profits by 156% in 2014, but trade for 124 times 2014 estimated earnings. That’s too steep and quite risk if the chart overlay to 1929 proves correct.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/stocks-to-sell-mgm-tsla-p/.

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