Currently, one of the hardest factors when investing in the Australian stock market is to find companies / sectors with decent growth potential moving forward that are on reasonable valuations. In a lot of instances, companies that have demonstrated strong growth over recent years are priced expensively, primarily due to the scarcity of such stocks. These high valuations lead to significantly increased investment risks when the companies hit a plateau, or worse. This month clearly illustrates these risks with the worst two performing stocks fitting that description. They have been priced expensively after excellent growth but failed to produce e.g. Blackmore's -27% and TPG Telecom -29%.