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Hertz: Take The Wheel, Contrarians (NASDAQ:HTZ)
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Trinseo: This Is Why Maybe You Should Catch A Falling Knife (NYSE:TSE)
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Currency Impact In International Investing: A Guide For U S Investors
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15 Best Undervalued Stocks to Buy Now
Investing in the stock market could be difficult. We can classify investors based on their portfolios. The low risk-takers who prefer investing in high dividend-paying stocks (see 15 Best Dividend Stocks with Upside Potential) and the high-risk takers, investors who are more eager to invest in falling knife stocks. Falling knife stocks are the stocks that may fall +50% in a month or +80% in six months. They are the category of stocks that have undergone a rapid decline in share price in a short amount of time.
The term “catching a falling knife” is popular for investors who attempt to buy a stock at its lowest point and hold on to it as it rises again. When a company’s share price has fallen significantly making it appear to be undervalued, most investors would consider this as an opportunity to purchase the stock before it rebounds to generate capital appreciation. Based on a study by Brandes Institute, falling knife stocks in the United