Investors get an earful of conventional wisdom about so-called hot industries and sectors.
For example, plenty of people believe the healthcare sector is a sure bet, with aging baby boomers purchasing goods and services in record numbers.
And of course, there’s the inherent assumption that a company included in the S&P 500 must – by definition – be a safe investment.
These may be good stories, but they’re not necessarily true.
Endo Pharmaceutical blew up those “hot sector” assumptions Friday, and not in a good way.
Shares of the S&P 500 component gapped down and plummeted 39% in six times normal trading volume after the company slashed its 2016 sales and earnings estimates. The company also reported a worse-than-expected loss in the first quarter.
