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Some of the worst-performing stocks of 2022 are household names. From retailers to biotech firms to a crypto exchange, the laggards of last year got hammered as inflation kept advertisers and consumers at bay, higher interest rates made borrowing money for operations more expensive and COVID-fueled bottlenecks gummed up supply chains. Throw in Americans deciding that they have enough fluffy throw pillows and realizing they really like beef, and these shares got slammed.
It's a cautionary tale for wealth advisors with clients who are emotionally attached to certain stocks — and to institutional investors who pile in.
Aaron Klein, the CEO of Riskalyze, which makes risk management and compliance software for the wealth management industry, said that financial advisors deal all the time with customers who own individual stocks for sentimental reasons.
"While it can be relatively easier to convince clients to sell that losing stock, it's not long ago that advisors had an even tougher problem — getting them to sell the winning stock that is making them $10,000 a month," he said.
Scroll through our slideshow of the worst performers of 2022. All data is from Morningstar.