1 Big Red Flag to Fear When a Stock Is Down
We've all picked stocks that didn't perform as well as expected. And, if you're like me, you've also held onto underwater investments for a bit longer than appropriate in hopes of a recovery.
In those cases, it's helpful to see a big red flag that lets you know that it's time to call it a day and recoup the remains of your investment. Here's one to be on the lookout for, especially when it's coming from a stock that's taken a beating recently.
There are a lot of things that can cause a company's stock to go down and stay down. Many of those things are entirely external and uncontrollable, like bearish sentiment in the wider market, rising interest rates courtesy of the Federal Reserve, or rising risks from geopolitical developments. Other factors, like sales performance and profitability, are at least partially under the control of management.
Source Fool.com
