Topic: How To Invest

What is Pat’s commentary for the week of September 12, 2017

Article Excerpt

Dear Inner Circle member: Here are some questions you may have asked yourself when you thought about stocks that went sideways or down after you bought them. “How long do I hang on to the losers in my portfolio before I sell?” If your goal is to cut risk and improve your long-term returns, there’s no simple answer. Stock prices are volatile. They react, often randomly, to all sorts of factors. The factors and the strength of the reactions shift randomly as well. The fact that a stock went down for any particular period has no bearing on what it will do next, regardless of whether you owned it. Look at it this way: If you researched the stock but never got around to buying, and then it went down, the drop in price might make you like it more. Rather than sell because it dropped, you might instead decide to buy because it’s cheaper. Then too, you can find many cases where a stock…

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