7 Stock Warning Signs + Best ETF to Buy Today for Big Gains
2 minutes, 16 seconds read:
Choices.
Some are as easy as choosing chicken or fish for dinner.
Others are a little trickier, like the stocks you put in your investment portfolio.
Not to worry: That’s why we’re here to help!
In Part 2 of our Sweet Money Daily series, “Build Your GenWealth Portfolio in 3 Simple Steps,” I will help you narrow the choices.
I’ll share seven tell-tale warning signs of stocks to avoid.
Plus, I’ll give you the name and ticker of the best exchange-traded fund (ETF) to buy today for the future.
As I mentioned in Part 1 of this series, to build the strongest level 2.0 investment portfolio, you must follow three important steps: preparation, choice, and maintenance.
Today, your next step is choosing to weed out troubled 1.0 companies.
7 Warnings Signs of Stocks to Sell Now
Level 1.0 publicly traded companies feature one or more of the following financial characteristics:
These troubled companies feature one or more of the following financial characteristics:
- Declining sales over the past three to five years.
- Buying back stocks and lifting dividends despite declining business, as seen by declining sales.
- Borrowing money, and if sales are declining, effectively borrowing to buy back stocks and pay dividends.
- Buying companies at irrational valuations with no real chance of changing their underlying businesses.
- Facing technological obsolescence.
- Losing market share to new companies because their brands are falling out of favor or because their products or services are considered out of touch with the times.
- Facing the prospect of moving their plants and factories to other countries without the cash to do it.
Companies fitting one or more of these criteria buy them a spot on your “Avoid” list.
Now that you know what NOT to buy, let’s switch gears.
Let’s step into the GenWealth 2.0 world.
The Best ETF to Buy for the Future
Level 1.0 companies facing these financial challenges will soon fade away.
The key to building a GenWealth portfolio for future stock growth is to rid it of fading 1.0 companies and sow it with level 2.0 companies. One of the best ways to do that is by focusing on The GenWealth Report mega trends:
To profit over the long term, investors need to choose the best stocks from our specific GenWealth mega trends.
One of the best 2.0 ETFs you can buy today is the ARK Innovation ETF (NYSE: ARKK).
This ETF holds 35 of today’s most innovative companies.
ARKK invests in companies that are relevant to the theme of disruptive innovation!
This is our focus: disruptive innovations.
With that said, I look forward to wrapping up this series with you in the coming days with “Part 3: Maintenance.”
Until then, please feel free to follow me on X for your daily dose of timely investment information and to keep up with the next generation of stocks.
You may find me @InvestWithAmber.
Until next time, keep investing!
Amber Lancaster
Editor, The GenWealth Report
Disclaimer: We will not track any recommendations in Sweet Money Daily. We are just sharing our opinions, not advice. If you want access to the stocks in our model portfolio with tracking, updates, and buy/sell guidance, please check out The GenWealth Report.
