7 Blue-Chip Stocks to Avoid in a Bear Market In a bear market, not all blue-chip stocks live up to their name. Investors need to identify the blue-chip stocks to avoid in their long-term portfolio. Otherwise, those stocks could lead to bigger losses as the selling pressure intensifies. Companies that misjudged the severity of inflation, and what customers wanted, and failed to lighten inventory amid a sudden decline in demand have the highest investment risks. For example, customers may have a medium to very high income but are living paycheck to paycheck. They will prioritize paying their mortgage, covering sheltering costs, and having enough income for food first. They may sell their luxury goods and cut spending on discretionary items. Retailers like Walmart, and Home Depot are at risk of profit margins shrinking. E-commerce firms are not immune to the slowing economy. Amazon may sell goods at the same price as the physical stores. Consumers who are shopping for food may pick up comparable items at stores. That would hurt Amazon’s sales volumes in 2022.