I'm sure the bursting real estate bubble and the subprime mess is on your list. I'm sure high gas prices is on the list, if not I'm sure you complained about them during 2007. How about Citibank taking a HUGE loss. Well, it comes as no surprise that the 10 worst performing industries in 2007 are all related to those stories.
Without further ado, here is the dubious list.
| 10 Worst Performing Industries in 2007 | |
| DJ | -56.31% |
| DJ | -52.36% |
| DJ | -45.28% |
| DJ | -37.16% |
| DJ | -31.30% |
| DJ | -30.81% |
| DJ | -29.02% |
| DJ | -27.73% |
| DJ | -26.70% |
| DJ | -26.67% |
| Average Return for 10 Worst Performing Industries | -36.33% |
The lesson to the story here is just because the pundits are screaming doom and gloom doesn't mean there isn't money to be made. Plenty of people got very wealthy on the demise of the real estate bubble. There is always a way to play the downside. For example, this year I was heavily invested in an UltraShort Real Estate ProShares ETF (SRS) that did quite well, up 75% since it started trading in March.
While the stocks we profile aren't part of these indices there are penny stocks that could have been shorted such as: TOUS, DHOM and CHCI. In fact, DHOM and CHCI are still good canidates to short. They are both traded on the NASDAQ and are in jeopardy of being delisted.
As always do your own due diligence.
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