7 Really Stupid Investments

Commentary: Highlights from a decade of bad investment ideas.

I get asked all the time about my very "favorite" Stupid Investments of the Week, the ones I consider the best in the nearly 10 years I have written the column.

There are too many to mention -- which is why the column has been so much fun to write -- but here are seven that come up a lot in conversation, and always make me smile.

* The very first one: unsecured subordinated investment notes from American Business Financial Services, which ultimately stopped paying interest and defaulted.

* Luvoo.com, because it started with a seductive (for me, anyway) phone call from Carmen Electra.

* Investment seminars that you typically see in late-night infomercials -- ranging from Teach Me to Trade to Secrets of Probate Investing, Optionetics, Rich Dad Academy Real Estate training and many others -- which I went to so that you wouldn't have to.

* XanGo Juice distributorships, because it was the last thing anyone expected to be pitched when they followed radio ads to a site promising to help them earn a lot of money.

* There's nothing like deconstructing a bad insurance policy -- like most of the ones you see advertised on television or in mass-marketing campaigns -- but AfterThoughts "birthday insurance" was the most unforgettable insurance programs tagged as SIOTW.

* So few people -- besides the ones selling them -- understand equity-indexed annuities like the MasterDex 5, and products like it comes up all the time.

* All things Gerber, baby: The Gerber Grow-Up Plan and its sister investments are among the things that I get asked about most often. They have virtually all of the classic telltale signs of a bad investment -- the subject of the final SIOTW column next week and they have returned to the column every time there seems to be a new advertising blitz.

INVESTOR CENTER

MARKETS:
Chart
TODAY
Portfolio Chart

RESEARCH STOCKS & FUNDS

Subscriber Tool

Stock Screener

Screen over 7,000 stocks using more than 100 different variables.

Portfolio Tracker

Track your own buys and sells

See More Tools

Answer Engine
Find Answers to Life's Challenges  

Find solutions to this and many other problems using

Answer Engine from SmartMoney. 

Copyright 2012 Dow Jones & Company, Inc. All Rights Reserved
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit
www.djreprints.com.