3 Industries to Avoid at All Costs
The current market meltdown has definitely precipitated valuations we haven't seen in a long time in certain sectors. The COVID-19 breakout has caused the government to order a sudden stop to a wide swath of businesses across the country, especially those in anything related to travel or transportation.
On the other hand, Congress just passed a giant $2.2 trillion stimulus bill, and within that bill, there's $500 billion set aside for bailouts to distressed companies. However, f you're thinking about investing in any of the following beaten-down sectors just because bailout funds might be coming, you should think twice before doing so.
That's because when a company takes federal money, there will likely be strings attached. And those strings could mean a severe dilution of shareholder value. So avoid these industries that have seen their stocks perk up on the bailout news, as they may not bounce back like you think.
Source Fool.com
