The Seven Most Dangerous Stocks in America
By the Stansberry Research Analyst Team
The market has soared since its 2022 lows...
And yet, most folks across America are skeptical. Can stocks really continue heading higher?
After all, in the past few years alone we've experienced...
- Out of control inflation...
- Skyrocketing interest rates...
- Deteriorating home values...
- And big drops in retirement accounts.
That's probably why Americans are hoarding a staggering $5.5 trillion of their savings inside money-market accounts.
What's worse is that those accounts are earning an average of only 0.23% a year in interest, according to the Federal Deposit Insurance Corporation.
That's $23 a year on $10,000 in savings... And it's nowhere near enough to keep up with higher prices at the grocery store or gas pump.
Still, that's what folks across our nation are choosing to do instead of putting their money into the stock market.
We don't blame them.
After more than a year of constant bad news, nobody's quite sure what's really going to happen next.
But one thing is certain. It's essentially inevitable. And it will likely be the biggest mistake that millions of Americans make in their retirement accounts this decade...
Is Your 401(k) 'Dead Money'?
The "Magnificent Seven" have been on a tear this year.
The Big Tech stocks that make up this powerhouse group – Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), Meta Platforms (META), Nvidia (NVDA), and Tesla (TSLA) – accounted for roughly 75% of all S&P 500 gains through the first six months of the year.
That massively outpaced the performance of the other 493 stocks in the index.
In fact, these seven companies practically ARE the new bull market in stocks.
The gains have been almost exclusive to this small circle of tech companies... And if you don't own them, you're probably not seeing your portfolio bounce back the way you think it should.
It also sets up a dangerous situation for folks across America.
Because despite what you're seeing on Wall Street right now, with tech giants like Apple, Meta, Alphabet, and Microsoft racking up huge profits... what comes next for stocks is going to be a lot different than you think.
That's because roughly every 10 to 12 years, the biggest, most successful companies in America experience a "changing of the guard."
It's an identifiable pattern we've seen occur for more than a century, powerful enough to open a window in the stock market where huge amounts of money can be both made AND lost.
And right now, it's on the verge of happening again.
If you own shares of these seven stocks, you MUST pay attention. Otherwise, your 401(k) could wind up being "dead money" for years – if not decades – to come.
It's Happened Before... Time and Time Again
To be clear, we're not saying these seven stocks are bad businesses.
They're simply dangerous companies.
Take Cisco Systems (CSCO) during the last big boom... the dot-com craze of the late '90s and early 2000s.
It had a real business at a time when most folks were chasing garbage business models wrapped in gimmicky Internet lingo. In just five short years, the firm's revenue grew from $2 billion to $12 billion. That's incredible annual growth.
And it was fueled by strong fundamentals... The company earned more than $12 billion in revenue and surpassed $2 billion in profit in 1999.
As a result, shares soared – climbing nearly 250% in just 15 months.
In March 2000, Cisco claimed the title of the world's biggest company.
And yet, even today, 23 years later, it's still down from its 2000 peak.
Don't chalk that investment failure up to a business failure, though...
The company has kept growing. Its annual revenue last year was more than $50 billion. And its routers, switches, and network equipment still power the Internet as we know it today.
But overall, the company hasn't been able to entice investors the same way it did in 2000. As a result, it fell from No. 1 to No. 30 on the list of top U.S. companies.
There are plenty of ways to explain this decline.
But to us, the real story centers around a little-known fact of the American economy...
The No. 1 Mistake Investors Will Make in 2023
Wall Street goes through a consistent "changing of the guard."
Historically, the largest stocks have struggled to maintain their dominance. It doesn't matter if the underlying business keeps chugging along... Eventually, the biggest stocks almost always fall from the top of the heap.
That's why simply knowing where the overall market is headed isn't good enough...
You can be bullish or bearish – and be right. But if you own the wrong stocks, it won't matter one bit.
The world has gotten a lot more bullish as stocks soared in 2023. Individual investors and investment professionals are slowly getting back into the market.
But they'll probably both make the same mistake...
They'll buy the biggest stocks – the ones that led the market during its previous peak.
And those companies won't lead to the biggest gains this time around.
The next group of winners will take the throne... leaving the old ones behind.
This "changing of the guard" is one of the most important dynamics on Wall Street. It has happened decade after decade, for more than a century in total.
It's inevitable... And it means that right now, the stocks you choose not to buy are just as important as the ones you put money into.
We're Not Calling for a Crash...
These seven dangerous stocks are basically propping up the entire stock market.
And the cracks are starting to appear...
That doesn't mean these companies will disappear.
Amazon, Alphabet, and Apple aren't going anywhere. People aren't going to stop ordering everything under the sun anytime soon. People aren't going to stop Googling things. They're not going to toss their iPhones in the trash...
But we're looking at this strictly through the lens of how these seven companies will perform as investments going forward.
And these tech companies have gotten SO big over the past decade, that there really isn't much meat left on the bone for investors... and that's what makes them dangerous.
For example, there are dozens of big-name companies out there that are still relevant and successful but have performed terribly for investors. For example...
- Bank of America is down nearly 50% from its high back in 2006...
- Verizon's stock has lost more than 40% of its value since 2019...
- Boeing has lost more than 50% since 2019...
- And Nike's stock is down 40% since 2021...
They're all still industry leaders... Boeing remains the king of aviation. Plenty of folks still use Bank of America's checking accounts and credit cards. Nike is likely still the first name you think of when it comes to sneakers. Verizon's the third-largest cellphone carrier in the world.
But when a company gets SO big, it's less and likely it can continue the same rate of expected growth any longer...
That doesn't mean it won't or can't be successful at its business. But it does usually mean that its best days as an outperforming, profitable stock are probably over.
That's what's happening right now in America...
What Comes Next for American Investors
Investors rarely realize that these "changings of the guard" are happening... until it's too late.
That's why we've brought two market experts together to show exactly what this means for your personal wealth – not just in the short term, but for years to come.
You can watch their exclusive interview below.
- You'll learn how and why this pattern has happened in the markets repeatedly throughout history...
- Exactly what to do to protect yourself from the crippling losses that could result from this huge change...
- And you'll even receive the name and ticker of a stock that could end up becoming one of the market's biggest winners of the next 10 years.
The last time we saw this pattern reemerge on Wall Street was more than a decade ago... Investors who caught on early and moved their money into the RIGHT companies could have experienced life-changing profits.
That's absolutely going to happen again today.
The only question is, will you look for the NEXT winners? Or will you sink your hard-earned money into what worked LAST time?
The next few months and years will result in a major shift in the U.S. stock market.
It will catch many investors off guard. But if you take the time to learn what's coming, you'll be prepared for it. Find out how, right here: