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While short selling excels in bear markets, it typically loses money in bull markets. This strategy allows one to sell a stock first and then buy it when the price falls. However, if you can precisely spot such toxic stocks, you may gain by resorting to an investing strategy called short selling. If you own such bubble stocks for an inordinate period of time, you are bound to see a massive erosion of wealth. Overpricing of these toxic stocks can be attributed to either an irrational enthusiasm surrounding them or some serious fundamental drawbacks. Accurately identifying such bloated stocks and getting rid of them at the right time can protect your portfolio.
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Toxic companies are usually characterized by huge debt loads and are vulnerable to external shocks. User experience (UX) design is the process design teams use to create products that provide.
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