Signs of a bad investment

Image source: thefiscaltimes.com

 There is no such thing as a “sure gain” in the world of investments. Any investment can always go south, even if it looks promising in the beginning. While this might be the case, there are telling signs an investment is showing its true colors.

Quick decisions are required. If an investment forces you to make a quick decision as an investor because it is only a “limited time offer,” then you shouldn’t put your money on it. You should have full control when you invest, and researching about an investment takes a lot of time and effort. To keep it short: don’t invest on something that sounds shady and desperate.

Image source: moneycrashers.com

Falling behind on industry trends. If you’re looking at a company in which to invest, make sure that they are doing the necessary measures to stay relevant. You don’t want to bet on a company that lags behind.

If it is “hot” at the moment. It might sound appealing, but once a stock is described as “hot” or in trend, you might already be too late for it. In fact, once it has been tagged as such, it is probably on the verge of bursting.

Get-rich characteristic. If an investment uses greed as a selling point, then do your best to stay away from it. Investment scams are known to boast quick and hefty potential gains, usually promising double returns in as short as three months.

With a degree in Business Administration and an MBA in International Business Management, Alex J. Ness is skilled in wealth management, investment, and private banking. For more articles about investment and finance, visit this page.