The Risk with Bargain Stocks
If you watch the stock market you'll notice overall stocks have been declining since April. By know you would expect there to be some good deals available so you don't have to resort to penny stock brokers for cheap stocks. Surprisingly these deals aren't as easy to come by as you would hope.
When the financial crisis hit stocks sank to a 20 year low, but things right now are a little different; the bargains are a bit more difficult to find now. True, there are some regular stocks selling for at low rates but some of these come with great uncertainty. The fate of some companies and their stock are clouded by legitimate debt fees in Europe as well as by possible reforms in the United States. If the economy falls into a recession many of these "bargain" shares could pose a significant risk to your portfolio.
While the trading in the stock market has always involved taking some risk. The stock market today feels more unsteady or risky than the stock market of previous decades. There are some good deals available, but they all come with a fair amount of risk. Evaluate your risk tolerance before you buy too much of any one of these bargain stocks.