Penny Stocks: The Bad and Good

Many of us, including AAII and FINRA, are less than thrilled by the notion of getting rich quick by investing in micro-cap (penny) stocks. See:

http://www.aaii.com/journal/article/investments-that-concern-finra

I think one better alternative is to pay close attention to the stocks and funds listed in the model portfolios at AAII.com. A ton of sound research is behind every one of them. See:

http://www.aaii.com/model-portfolios

Elsewhere, you can find the case for penny stocks. Here’s an example:

http://www.howlifeworks.com/Article.aspx?Cat_URL=finance&AG_URL=How_Small_Investors_are_Making_Huge_Returns_Trading_Penny_Stocks_185&ag_id=1190&wid=2598B1FB-FEB3-4820-88A7-6A9B8291BCD3&did=2685&cid=1005&si_id=1608