You know you’ve been thinking about it, especially with the S&P 500 cruising past 2,000 and the bull market now six years running: Is it time to sell some stocks and get out ahead of a “market top”?
Here’s the problem: Most information about investing that I’ve read during my career is more instructional about investing in stocks rather than selling them. I think that message has it backward, and that could be why so many professional investors say that selling is harder than buying.
Just like the trigger to purchase a stock, there is no one-size-fits-all when it comes to the sell decision. So here’s the really important thing: Even before one invests in a stock, the basic philosophy underlying when and why to sell needs to be learned. This, I believe, should apply regardless of one’s investment time horizon.