Many Stocks Are at 52-Week Lows, but Don't Fall for These Traps
After a mid-2020 to late-2021 bull run, many companies across the board have witnessed their values plunge in 2022. While bear markets can be a great time to go discount shopping and grab some great companies for cheap, they can also be a time to be wary of falling into investing traps. With many stocks currently at or near 52-week lows, value and dividend traps are everywhere. Here's how you can avoid them.
One of the best lessons you can learn as an investor is that cheap stock prices don't always equate to value. A $5,000 stock could be undervalued, and a $5 stock could be overvalued. For example, if a penny stock were priced at $5, it would likely be considered overpriced by most standards. However, if Berkshire Hathaway Class A shares were priced at $5,000 instead of the $463,400 at which it's currently priced, it'd arguably be the investment deal of a lifetime.
Source Fool.com
