3 Stocks You Don't Want to Be Holding When the Market Crashes Again
More than 20 million Americans are out of work and receiving unemployment benefits, largely due to the COVID-19 pandemic. And yet, you wouldn't know that there's a problem in the economy from looking at the markets. The S&P 500 is up over 5% since March 1, which is around the time the coronavirus was just starting to wreak havoc on the U.S.
Stocks have by and large recovered from the crash that took place that month. But that's also precisely why another market crash is inevitable: Investors are overvaluing stocks and likely aren't factoring in the long-lasting implications of the current recession. It's not a matter of if there will be another crash, but when. And if you don't want to see your portfolio take a big hit when it happens, you'll want to avoid hanging on to these three stocks:
Aurora Cannabis (NYSE: ACB) is a volatile investment whether there's a market crash or not. It's lost half its value this year and the company had to do a 12-for-1 reverse split in May to keep its stock price above the $1 mark to avoid getting delisted from the NYSE. A reverse split isn't a sign things are going well. However, Aurora is hoping to turn things around relatively quickly.
Source Fool.com
