THE INVESTOR’S EDGE
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Fallen Angels #makestocksgreatagain
Did you know that the term “fallen angel” does not appear in the Bible, but it is used to describe angels who sinned? So let’s look at the term out of the biblical sense. When someone calls you a fallen angel, you basically are being described as something which was once good, but now bad. Hey, that’s pretty heavy stuff, which begs the question; what the heck happened to you and more importantly why?
Ok, so now let’s look at fallen angels in terms of investing. A “fallen angel” is a stock that used to be blue chip (hence the term “angel”) but has since fallen out of favor with investors. Personally, I don’t like the term. It implies that the once blue chip names should essentially be looked at because they were once “good”. That doesn’t make any sense to me. I see no reason for looking at names just because they have “gone bad.” In the same vein as before, you have to first ask the question what happened and why?