CHAPTER 17WARNING INDICATORS
Trailers
Companies aren’t forever things. If you are trading individual stocks, remember that not all the stocks that underperform will come back, and historic price ranges are not always a good indicator of future price ranges.
Stocks that lead in a bull market or hold up relatively well in a bear market usually survive.
Those that trail significantly behind coming out of a bear market, though, may have problems that aren’t apparent to most investors yet.
One good rule to remember is that companies whose stock prices are going up are not the ones that go out of business. (Or as I like to put it, no stock in an uptrend has ever gone bankrupt!)
Never Ignore the Second Subpoena
One of the stocks that the fund managers ...
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