Multi-level marketing stocks are taking it on the chin in 2014. The top 10 companies by market cap are down an average of 15.2% year-to-date through Aug. 1 — 20 percentage points worse than the S&P 500.
Three things are conspiring against MLM stocks: Bill Ackman, earnings and China. The trio of items makes it incredibly tough for any of these businesses to gain momentum.
Is this latest series of events simply a cyclical downturn that hits every industry from time to time, or is there something else happening that is more permanent in nature … something that these stocks might not recover from?
Here’s a closer look at how each factor is weighing on MLM stocks: