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12 toxic investments you should avoid

GOBankingRates Logo By John Csiszar of GOBankingRates | Slide 1 of 25: So-called “toxic investments” gained notoriety during the 2008 financial crisis because they seemed to be everywhere. Even previously well-regarded blue chip stocks like AIG were inundated with investments that were essentially worthless, requiring the federal government to step in and buy them before they dragged down these companies along with the entire U.S. economy. These days the term “toxic investment” can be more liberally applied to investments that the average investor should simply avoid. Here’s a list of some examples of toxic investments that can wreak havoc on your portfolio if you aren’t careful.

Stay away from penny stocks, subprime mortgages and more

So-called “toxic investments” gained notoriety during the 2008 financial crisis because they seemed to be everywhere. Even previously well-regarded blue chip stocks like AIG were inundated with investments that were essentially worthless, requiring the federal government to step in and buy them before they dragged down these companies along with the entire U.S. economy. These days the term “toxic investment” can be more liberally applied to investments that the average investor should simply avoid.

Click ahead for a list of some examples of toxic investments that can wreak havoc on your portfolio if you aren’t careful.

© Jorge Villalba / Getty Images/iStockphoto

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