Sabtu, 09 Januari 2021

Sell these 7 stocks tomorrow

The Early Bird - The Morning Financial Newsletter

Good morning -

Warren Buffett famously said his favorite length of time to hold a stock was forever. But that was so 2019.

Last year, Oracle of Omaha has been more of a seller than a buyer. But what’s interesting is that Buffett isn’t staying on the sidelines due to fear. It’s more of a lack of interest.

But wait? Aren’t stocks back near their pre-pandemic highs? Some sectors are growing without any regard to valuation. And that’s the point. The Federal Reserve is pledging to keep interest rates low for as long as it takes. The simple truth is that stocks have been moving up largely because it’s the only equity class providing growth.

However, that doesn’t mean that all stocks are still a buy. But sometimes, the hardest time to take a critical look at your stocks is when the market is charging ahead. After all, with some stocks climbing 100% or more since the pandemic, there is a lot of FOMO (fear of missing out) in the market.

But that’s a dangerous emotion that frequently leaves investors getting burned. And that’s why now is the perfect time to take a look at (maybe) taking some profits off the table.

This isn’t about market timing or calling a top to the market. We’ve put together this presentation to help you take a critical eye at not just these seven stocks but potentially other stocks in your portfolio that are exhibiting similar characteristics. For example, many of the stocks in this presentation are being downgraded by analysts. And that means that there is likely to be downward pressure on the stock price.

Click to view the “7 Stocks It May Be Time To Take Profits On.”

Matthew Paulson
MarketBeat.com

 
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