Avoiding the Pitfall of Dead Money

Dead Money is the phenomenon of a stubborn stock that has hit a long term plateau. These are obviously stocks to be avoided, but sometimes that’s counter to what would seem like market wisdom. That’s because these stocks are often some of the most widely held and revered blue chips. Just for example, Walmart (WMT) might bounce around between $50 and $60 but it’s been in that general range since 2000. Same with Microsoft, go look at a really long term chart. You’ll see it bouncing around between $20 and $30 over the past 11 years. There’s definitely some food for though in the Smart Money article Dead Stocks Walking. A good cautionary read, and maybe it’ll help you evaluate your portfolio with a bit more clarity.