Investing solely in blue-chip stocks seems like a sound investment strategy. You buy good, established companies — preferably paying a dividend — and hold them for the long-term. In the meanwhile, you avoid chasing high-risk stocks like biotechnology companies or leveraged oil drivers. Just stick with safe, steady and (hopefully) boring stocks, and you’re fine.
Of course, that only works if you pick the correct blue chips.
Eastman Kodak Company (NYSE:KODK) was a blue-chip stock at one point before going bankrupt in 2012. So was General Motors Company (NYSE:GM) — a classic “widows and orphans” stock before it went under in 2009. United States Steel Corporation (NYSE:X), International Business Machines Corp. (NYSE:IBM) and Xerox Corp (NYSE:XRX) were all blue chips in one sense or another, and all of them have delivered a lot more pain than gain in recent years.
With the broader markets near all-time highs, stock picking is even more important. And while I don’t necessarily believe these 10 stocks include the next Polaroid or Xerox, they all have flaws that should lead them lower in 2017 … and maybe lower.
Here’s a look at 10 blue-chip stocks that are dead money for the foreseeable future.