Ending 2017 with lumps of coal? Fret not, these may turn into diamonds in 2018

SAN FRANCISCO (Dec 22): Investors saddled in 2017 with the market’s worst performers, including Under Armour and General Electric, may do well to remember as December draws to an end that lumps of coal sometimes turn into diamonds.

As investment advisors rebalance clients’ portfolios in the final weeks of the year, the instinct to dump stocks that have been left behind in surging markets - or that fall out of favour with analysts - can be self-destructive.

With the S&P 500’s rally pushing price/earnings multiples to highs not seen since 2002, laggards overlooked by a rush to own technology and other high-growth stocks may attract bargain-hunting investors heading into 2017.

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