BALTIMORE (Stockpickr) -- "U-S-A! U-S-A! U-S-A!"
Soccer fans across the country are getting ready to root for the U.S. men's national soccer team for the World Cup match this evening. What you might not realize is that, less conspicuously, investors around the world have already been chanting "U-S-A!" all year long.
Since the calendar flipped to January, the MSCI World ex-USA Index has returned a pretty tepid 3.28% gain. That's around half the performance that investors in the U.S.-centric S&P 500 have earned over that same stretch. But that's only part of the story; while overseas markets trail the U.S., lots of individual foreign stocks that trade here in the U.S. are looking downright toxic for your portfolio.
Today, we're taking a closer technical look at five of them.
Just to be clear, the companies I'm talking about today aren't exactly junk. By that, I mean they're not next up in line at bankruptcy court. But that's frankly irrelevant; from a technical analysis standpoint, sellers are shoving around these foreign toxic stocks right now. For that reason, fundamental investors need to decide how long they're willing to take the pain if they want to hold onto these firms in the weeks and months ahead. And for investors looking to buy one of these positions, it makes sense to wait for more favorable technical conditions (and a lower share price) before piling in.
For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.
So, without further ado, let's take a look at five "toxic" foreign stocks you should be unloading.