Login to your account

Lost your password?

Flight to quality Part II: The best stocks to own in 2018

The worst mistake investors make is buying the stocks that are highly hyped, then following them all the way down when they fail. The second worst mistake investors make is to hold on to these fallen stocks for years and years, telling themselves they could still bounce back and telling themselves that doing so is “long-term investing.” If they were long-term investing, they would never have bought those hot, over-hyped stocks to begin with. When one is wrong, one should simply admit that one is wrong.

In that spirit, I offer today (and on Friday) fifteen stocks you can move your money into after you sell the junk that’s polluting your portfolio. In old-school market lingo, such a move is called a “flight to quality.”

Now the mere fact a stock is trading at a lower price doesn’t make it a failure. To know the difference between a failed buy and simply imperfect timing, it helps to know why you bought a stock in the first place. If the conditions for which you bought it are still in place, it makes sense to hold on to it, or even, if you bought a smallish portion to begin with, to double down. In that spirit, I’m beginning Part II of this list with three stocks that are down but not out.

As always, remember to treat these ideas as just that, ideas, and do your own research before making any investment decision.

Symbols: , , , , , ,

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.