Tonight at 6 p.m., we’ll issue 2 urgent “sell” recommendations in our Successful Investor Email/Telephone Hotlines. If you’re holding these 2 companies, we think it’s crucial that you sell them immediately to take profits—and avoid the potential for big losses—in your investment portfolio. Read on to learn how you can be among the first to get full details on these stocks with no cost and no obligation.
3 stock investment tips for deciding when to sell
Investors often ask us when they should sell a weak stock from their portfolio and replace it with something new. The answer is different for every stock. The general rule: you should be eager to sell speculative stocks with poor prospects. But you should be reluctant to sell high-quality stocks that have a well-established business with a history of profit and, better yet, dividends. That’s because these stocks should make up the bulk of your portfolio. Here are 3 stock investment tips for why you might want to sell a prosperous, well-established dividend-paying stock.
- The company’s outlook has deteriorated. It has taken on major projects that appear headed for failure. Or, it shows signs of bad management or lasting external difficulties that will cut into earnings. Or it has borrowed heavily, perhaps to make itself unattractive to companies that might have wanted to bid for it.
- The market outlook has deteriorated. You would, of course, sell if you knew the market was headed for a broad setback that could go on for a year or two, or possibly longer. However, market declines like these are rare and hard to predict. At any given time, somebody is predicting that a market decline like this or worse is just around the corner. Most of these predictions turn out wrong.
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- Your circumstances have changed. You need cash now more than you need future growth or dividends. Or you have retired or lost your job, and you need to cut your investment risk by selling some stocks. This is usually your soundest reason for selling a high-quality stock.
Our stock investment tips: Always keep in mind that selling costs money. You have to pay brokerage commissions. You also lose money to the bid-ask spread. You may have to pay taxes on gains in investments you hold outside your RRSP. To avoid these costs, invest mainly in well-established stocks that you might want to hold on to more or less indefinitely.
Stock investment tips: Protect your portfolio by selling these 2 stocks right away!
As I mentioned, in tonight’s Successful Investor Email/Telephone Hotlines (which we send out to Successful Investor subscribers at 6 p.m.), we name 2 companies that we think you should sell right away to take profits—and avoid the potential for big losses. I want you to be among the first to get these urgent sell recommendations. That’s why I’m sending this information out as soon as possible—tonight at 6 p.m.—so you’ll have plenty of time to place your sell order before the markets open Monday morning. But to get tonight’s Successful Investor Hotline, and full details on these 2 stocks, you must take a FREE trial to The Successful Investor right away. When you do, you’ll get one free month of The Successful Investor and 6 Special Reports—all with no cost or obligation. Best of all, we’ll email you tonight’s Hotline at 6 p.m. (including full details on our 2 latest sells). If you order after 6 p.m., you’ll be able to immediately view the Hotline in our Hotline archives on tsinetwork.ca. Don’t miss out! Click here to start your free trial to The Successful Investor right away.
