There were two tumbling stocks that caught my eyes one year ago: Citigroup and Ford.
Both dipped down to the $1 range. Buying these stocks at that time was risky due to the high levels of uncertainty, the financial meltdown, and the high probabilities of bankruptcy. Additionally, these stocks were in the two worst possible groups at the time: U.S. banks and U.S. car companies.
Nevertheless, if you had some spare cash lying around, buying Citigroup or Ford stock could have been a nice risky bet.
If you bet on Citi, you only made some pocket change given the risk you took. Tripling your money if you bought at the bottom.
Now, if you went for Ford, you made jackpot as the stock went from around $1 to $10. You would have made a ten-fold increase in your money. It even sounds like your typical make-money-online internet scam.
Would I have invested more than, say, one-thousand dollars, in any of these stocks at the time? Probably not. However, they still make it to the top risky trades of 2009.
As for 2010, buying Gold at $1,1,00 is probably not going to give you a ten-fold profit. Actually, you may even end up flat or at a loss. Betting on a sovereign default is probably your best bet to make some substantial cash in 2010. You can look at the Business Insider’s top 10 likely-to-default list for inspiration.
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