2023 Investing Preparation Revisited: 5 Stocks to Avoid

By TradeSmith Research Team

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There’s a saying that if you stay prepared, you don’t have to get prepared.

When I shared my list of stocks to avoid in 2023 in October, that was my intention – I wanted to help you stay prepared so you didn’t have to get prepared for what’s in store.

And part of being prepared is knowing the stocks to avoid… even if it means dumping some of your current laggards.


I know it’s tough to let go of an investment that isn’t paying off in the way you envisioned. But a lesson from my friend and TradeSmith CEO Keith Kaplan shows why going through tough moments is critical for success.

After a trip to New York in July, Keith shared how he started experiencing aches, chills, and other symptoms of an oncoming sickness.

He turned to his usual cure-all: a jump in a cold-plunge tub he bought for his basement.

The benefits are supposed to be tremendous — reducing chronic pain, providing immune system support, lowering inflammation — and Keith said he felt almost as good as new the day after his cold plunge.

He did admit that the first few moments of any cold plunge are a shock to the system, followed by pins-and-needles pain, but when you’re done, you come out the other side all the better for it.

And we talked about how that’s a lot like investing… specifically when it comes to ditching your losers.

When you start thinking about selling a stock that isn’t living up to your hopes, you know it’s going to be unpleasant to sell it.

And once you hit the sell button, it can feel like a shock to your system, filled with pain and discomfort.

But just like with a cold plunge, the pain of dumping your losers goes away pretty quickly. And just like a cold plunge, this “treatment” puts you back on healthy footing.

With 2023 almost upon us, I’m sure there are stocks lurking in your portfolio that need the “cold-plunge treatment” to make sure you’re strongly positioned for the new year.

Stocks that you may have bought as a “lottery ticket.”

Or stocks that lured you in with high dividend yields.

Or stocks that originally seemed certain to weather sky-high inflation and economic downturns.

No matter the reason you acquired them, it’s time to prepare yourself for the shock that will come with the “cold plunge” of selling off these stocks.

For this issue of TradeSmith Daily, I’ll show where you can revisit my analysis of five stocks to avoid in 2023.

In Part 1, I shared why you should avoid these stocks:

  • AMC Holdings Inc. (AMC)
  • Whirlpool Corp. (WHR)
  • Tractor Supply Co. (TSCO)
In Part 2, I rounded it up with the other two stocks to avoid:

  • Colgate-Palmolive Co. (CL)
  • PNC Financial Services Group Inc. (PNC)
Some of the stock prices for these companies have dropped or stayed stagnant since my original report, while others have climbed.

Keep in mind that I’m taking a longer-term view of these companies, not just judging them by their performance this past October to December, as I believe that their stocks will not treat you well next year. Again, you can access Part 1 of my analysis here and Part 2 of my analysis here.

Also, I want to make sure that it doesn’t seem like I’m just projecting doom and gloom.

There will be stocks to buy and to put on your moneymaking watchlists. I shared where some of those opportunities will arise from here, and I will continue to share my outlook throughout the next few weeks.