Investment Experts: Types of Stocks You Should Consider Dumping in 2025
If you are a stock market investor , it’s always a good idea to regularly check in with your portfolio, especially with so many outside forces, both political and economic, influencing the market and your investment decisions. Making changes during times of economic volatility isn’t always a sure-fire decision, but it could be a good time to consider locking in any losses or gains. And according to investing experts, some stocks could be worth dumping all together.
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If any of these companies are in your portfolio, it could be the time to reevaluate what you’re investing in .
Defense Contractors
Big defense contractors have typically been pretty safe bets in the stock market, although Boeing’s struggles last year during a rising market clearly show that isn’t always the case. Peter C. Earle, senior economist for the American Institute for Economic Research, sees possible trouble ahead for the industry.
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“Should the incoming Trump administration follow through on its pledges to force other nations to fend for themselves, the largest publicly traded defense contractors might be poised for a pullback: Lockheed Martin (LMT) and Raytheon (RTX),” Earle said.
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Renewable Energy
Earle also sees risk in the green energy sector, noting that the Biden administration’s Inflation Reduction Act provided for a large amount of subsidies for renewables. “If those are reduced or eliminated, many of the solar, wind and alternative energy source firms will be in serious jeopardy. Two of those may include Enphase Energy (ENPH) and NextEra Energy (NEE),” Earle said.
Import-Dependent Firms
Earle also noted that a cornerstone of the Trump administration is tariffs and other forms of trade protectionism — a term for government policies that restrict international trade with the intent of helping domestic industries. Such measures are often controversial because of the unintended consequences that can arise from them.
“If tariffs of the type which have been discussed are put in place — 60%, 100%, 200% and so on — retaliatory tariffs would follow. Those could, in turn, devastate companies that rely on imports: consumer electronics firms, automobile manufacturers, medical device makers and discount retailers. Those could include, among others, Boston Scientific (BSX), Walmart, which imports 70% to 80% of its goods from Chinese suppliers (WMT) and Sony Corporation (SONY),” Earle said.