It is anyone’s guess what will happen to the stock market. However, rising inflation and deepening economic trouble mean a decline is more likely than a rally.
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Several companies are likely to be in increasing trouble in the next few months. Investors should move out of these as soon as possible.

Troubled electric vehicle maker Lucid Group Inc. (NASDAQ: LCID) may not even be in business by the middle of next year. It took one more step toward oblivion. It only sold 679 vehicles in the second quarter, which drove a tiny $97.3 million in revenue. The company lost $559 million. It has only $4.6 billion in cash, cash equivalents and securities. Lucid said that will fund it into next year. What happens then is speculation, but based on the losses, the cash balance is low.

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Meta Platforms Inc. (NASDAQ: META), the oddly named parent of Facebook, posted its worst earnings in memory. Its shares now trade at $162, down from a 52-week high of $384.33. Its current market cap is $450 billion, which means more than $500 billion of value has been wiped out in less than a year.

Investors need to live with the fact that Meta’s results will not get better for several quarters or longer. Recessions almost always hammer the advertising industry. And Facebook has formidable competition from Google and Amazon. In the most recent quarter, revenue dropped 1% to $28.8 billion. Net income fell 36% to $6.7 billion.

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