Speculative stocks are a risky proposition in today’s market. With even the S&P 500’s most stable giants dropping, small-cap risky stocks don’t stand a chance.
Unless you’re willing to dig a little to find high-risk, high-reward stocks appropriate for today’s conditions. One of my favorite strategies is learning as much as possible about a particular industry while its popularity is at a fever pitch. If you follow markets, certain speculative sectors rise rapidly before falling to a fraction of past pricing.
However, that doesn’t mean the sector is doomed to failure. It simply means market realism caught up to excessive exuberance. That realignment means potential. These three speculative stocks are part of past sector overenthusiasm and their stock pricing is in the gutter. However, each has unique benefits and strengths despite sector-wide weakness.
This post originally appeared at InvestorPlace.