When stocks are trading at their highest levels for years, it’s hard to resist the temptation to buy them.
But when the stock market is in freefall and investors have seen it all before, a different kind of buy is warranted.
Here are five stocks you should avoid.
General Electric stock stock: The General Electric shares dropped more than 35% in 2016 and are currently trading at an 18-month low.
The company is trading at a loss of $13.9 billion and is struggling to make its earnings come in.
GM has been in a decline for more than a decade and has seen its stock price decline more than 50% over the last decade.
GE is still the world’s largest manufacturer of industrial machinery and equipment.
Apple stock: Apple shares have been falling for years now and now have been down more than 25% from their all-time high in 2015.
However, the company has not been in free fall, but has been stuck in a long-term decline.
The stock is trading just under $30 billion, which is still far below its historical highs.
Apple has been the most successful tech company of all time and is a leader in mobile and personal computers.
However if you buy Apple shares now, you could end up losing hundreds of thousands of dollars in dividends over the next few years.
Chevron stock: Chevron stock has been suffering a downturn for a long time now.
It has been down 20% over a decade.
The oil company has been losing money for years.
But Chevron has been on a tear over the past few years and is now on track to surpass $100 billion in earnings for the first time in over a century.
Chevron has a history of turning profitable on a dime and it has not lost any of its value in the last few years, but if you are a short seller, you need to avoid buying the stock now.
Google stock: Google stock has gone down more in the past three years than it has in the entire history of the company.
In fact, Google stock is down as much as 70% in three years.
Google has struggled with its core business of search, advertising and other services.
The search engine is still in a slump and the company is down 30% in revenue over the same time period.
If you are shorting Google stock now, then you could lose hundreds of millions of dollars over the course of the next five years.
Coca-Cola stock: Coca-colas stock has fallen by more than half from its high of $180 per share in 1997.
It is down more this year than it was in 2013.
Coca Colas shares are down by about 30% from the year before and its shares have fallen by almost 40% from its peak in 2011.
Coca colas is a major player in the beverage industry, which means that if you sell Coca Cola stock now and are short, you will be in for a huge loss.